Tuesday nights I eat dinner at my parent’s house. My father recently purchased an investment program and we were discussing different aspects of his business and mine. I know nothing about the stock markets, ForEx, or options… or anything else that he trades.
But I recognize good advice when I hear it. My father told me that the most important lesson he had to learn in trading, and the reason so many people never make any real money at it is this:
“You have to let go of your losers. Most people think that it’s about hitting that big winner, but the truth is, you have to ruthlessly cut out your losers before they drag you down. Too many people hold on to the vain hope that their option is going to come back up. It may, or it may not. Give it a brief chance, then if it’s a loser, kill it and move on to a winner.”
I don’t know stocks and options but I do know business. And every product or service that your business offers is an investment.
My guess is that you have at least one proven winner and a few others that you keep around because you’re really attached to them. 2 years ago you could drag your losers along with you, even if they weren’t making money. But heads up, we’re in a down economy now. Every aspect of your business has to pull its weight.
Here’s my question: Are you spending your valuable time or worse, money promoting or refining your losers? Or are you focusing most of your time and money on improving your proven winner or marketing it better?
To use a baseball analogy, one grand slam is worth more than 4 singles. It’s the 80-20 rule. You have to murder your losers. In this economy, it’s not only a matter of increasing profitability, it’s a matter of survival.
Check out my free report on the Internet Marketing Basics. Then leave a comment below and tell me how you ruthless you are with your losers.
