We're beginning to wrap up our discussion of capital preservation. In this week's 4-Minute Drill, Norman elaborates on the following 5 main bullet points on the topic:
- If there were a holy grail in trading it would be to be accurately capitalized
- Never add to or average down a losing position as a day trader (not necessary for investors). Take your loss, move on.
- Always have an actual stop in the market... not just a mental stop
- Know your market...
- Be willing to stop trading and re-evaluate the markets and your methodology when you go through a string of losses (Norman's number is 7-8 losses in a row)

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