We should trade only stocks with the highest growth probabilities. Do not hold stocks when their probabilities of growth are close to the average value. Switch to more profitable stocks. We must avoid risk. Do not put all your trading capital in one stock.
Diversification is the only way to survive in the market.
You cannot be a winner in every trade you make. Any trading strategy must leave room for some losses. Your returns may be positive or negative. Figure 1 shows returns per trade for one of our trading strategies for the year 1996. Figure 1 .