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Secret 20

Spread your risks through diversification

Distribute your risk among a variety of trades and markets. Divide your capital into tenths, and never risk more than a maximum of 10% on any one trade. One good profit often totally erases four or five small losers. On the other hand, if you take big losses and small profits, you have no chance of success. I also suggest concentrating on active, liquid markets, those that allow you to enter and exit when you want to with a minimum of slippage.


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