Q. Dear Toni, I have been trading for more than a year now. My trading has been profitable, but my average loss is a lot larger than my average win and I would like to know if you have any advice on how to turn this round.

A. Whenever I talk to other traders about the things that caused them the most frustration in their first several years of trading, this very same dilemma seems to pop up. Unfortunately, making a large average loss is something that is nearly impossible to avoid at some point in your trading career. A number of things can contribute to it.
In the past two issues of YTE (Nov/Dec 09 and Jan/Feb 10) I explored several reasons traders find themselves at this point...

Excerpted from an article originally published in the Mar/Apr 2010 issue of YourTradingEdge magazine. All rights reserved. © Copyright 2010, MarketSource International Pty Ltd.

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