The very successful traders I’ve known are very aggressive.  When they’re right, they press their advantage.  They add to good positions or keep re-entering in the direction of their idea as long as nothing is proving them wrong.  “No one ever went broke taking a profit” is not how the best traders operate.  What Dr. Kiev was saying was get out of losing ideas quickly, but really milk the winners.  A good trade is valid until proven wrong.  Just a few more big winners make a big performance difference by the end of a year.  Risk management is not just cutting losers short; it’s also ensuring that the average size of your winners handily outstrips that of the losers.

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