Letting Winners Run
Why a few big winners drive most trading results, how to give strong stocks room to trend, and a real example of a steady trend that rewarded patience.
The big-winner math
For many traders, a small number of large winners produce most of the profits. The rest of the trades roughly cancel out: small losses, small gains and breakeven exits. That means the way you handle your best trades matters more than almost anything else. Cutting them short, even occasionally, can turn a profitable year into a flat one.
| 10 illustrative trades | Cut every winner at +2R | Let one winner run to +10R |
|---|---|---|
| 6 losses at −1R | −6R | −6R |
| 3 winners | +6R (3 × 2R) | +6R (3 × 2R) |
| 1 best trade | +2R | +10R |
| Total | +2R | +10R |
Illustrative. One trade handled differently changes the total from +2R to +10R.
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