Your Almost Daily Bit of Wall Street Wit & Wisdom

Tom Hanks

Tom Hanks in Cast Away, h/t Reuters

Successful speculation is as much about honing your survival skills as it is about finding winning trades.

You hone your survival skills by applying sound principles of money management.

Here are a few for traders:

Speculate based on what you can lose, not what you can gain.

Don’t overbuy or add to a losing position.

Remember to take your original stake out, so you can play with “house’s money.”

Do stay well,

Steve

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