"The smaller the losses, the more failures you can endure. Even if you get a lot wrong, you can still make money." - Mark Minervini, <Think like a champion and trade>
You have to bet small to keep the loss small. You have to bet as small as possible so the loss is small. If the loss is small, it is easy to quit. If you make a profit, you can buy more and grow your position. If you buy additionally, you have to liquidate it at the original price. If you bought additionally, it will be more profitable, so if you bought more, the profit would be quite large. You will be able to have a satisfactory day.
It's a way to endure small losses and make a bigger profit than losses.
The risk is low and the expected return should be repeated.
"How you deal with failure, not only in trading but also in life, distinguishes between ordinary and extraordinary. Remember that loss is a function of expected returns. Keeping losses below revenue is key. Always compare rewards to risks, and risks are based on your actual trading results. When you reasonably grasp how much revenue will be and how often it will occur, stop simply becomes a matter of arithmetic formula. Remembering that 'you don't take greater risks than expected returns' is key." - Mark Minervini, <Think and trade like a champion>
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