{"id":21724,"date":"2024-04-15T07:30:20","date_gmt":"2024-04-15T11:30:20","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=21724"},"modified":"2024-04-15T07:30:20","modified_gmt":"2024-04-15T11:30:20","slug":"heres-why-you-should-generate-tons-of-tiny-profits","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/heres-why-you-should-generate-tons-of-tiny-profits\/","title":{"rendered":"Here\u2019s Why You Should Generate Tons of \u201cTiny\u201d Profits"},"content":{"rendered":"

Editor’s note:<\/strong> Today, we’re handing the reins to colleague Larry Benedict – a market wizard and legendary hedge fund manager.<\/p>\n

He’ll explain the benefits of generating multiple “tiny” wins… rather than trying to catch huge moves.<\/p>\n

Here’s Larry…<\/p>\n

\n

Most of us have seen interviews where an eager host peppers a hedge fund manager or analyst with questions.<\/p>\n

Is the market too expensive and headed for a fall?<\/em><\/p>\n

When will this sector or stock rally?<\/em><\/p>\n

How will the market react to the next big event?<\/em><\/p>\n

The hosts know their viewers eagerly want to know (and trade) the hottest stock or sector that could pull in massive profits.<\/p>\n

However, by focusing on the next big move, viewers often miss out on a lot of market action… and potentially lots of profits.<\/p>\n

Just Find the Next Trade<\/h2>\n

While some markets run hot, others do very little at all… Often they’ll trade sideways in a range between price levels.<\/p>\n

But don’t be fooled – a sideways market can provide lots of trades too.<\/p>\n

In fact, rather than going for big swings like other traders do, my focus is on the sideways markets.<\/p>\n

My goal is simply to generate lots of tiny profits. By doing this regularly, these smaller profits can add up to something much bigger.<\/p>\n

It’s actually how I built myself up as a trader.<\/p>\n

Instead of forming a view about a sector or the broader market, I simply focused on finding the next<\/em> trade.<\/p>\n

In other words, my only “view” was about the potential success of that next trade.<\/p>\n

If you want to make it as a trader, I can’t emphasize enough how important this distinction is.<\/p>\n

For example, even if a share price is trending down, I look to trade any short-term bounce that goes against the overall downtrend. And vice versa.<\/p>\n

By doing so, you can use your capital much more efficiently to generate healthy returns.<\/p>\n

So, instead of going for one trade and hoping for a 100% return – which will have less chance of paying off – I focus on trying to generate multiple 10% returns.<\/p>\n

While that might seem like “chump change” compared to a multidigit return, there’s a much higher chance of achieving it.<\/p>\n

Do that a handful of times in one market over a year, and each 10% return soon jumps up to something much more exciting…<\/p>\n

Do that across multiple stocks or sectors, and those returns grow even more. It’s this simple approach you need to consider when trading.<\/p>\n

<\/p>\n

\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n

<\/p>\n

Substantial Profits Over Time<\/h2>\n

When starting out, so many traders keep looking for the next big thing.<\/p>\n

I know that’s what I did… and it cost me my trading account several times over.<\/p>\n

However, once I figured out how to trade by aiming for lots of little profits, I was able to swing things around.<\/p>\n

Not only did my account grow, but it also launched my career as a professional trader.<\/p>\n

For those who like to hold “views” on a stock or sector, what they are really talking about is capturing long-term trends.<\/p>\n

And for traders with lots of time and capital, it might be the right way to go.<\/p>\n

But by scoping out lots of little trades every week (or every day), you’ll build up substantial profits over time.<\/p>\n

More importantly, you’ll develop the habits that’ll truly enable you to make it as a trader.<\/p>\n

Regards,<\/p>\n

Larry Benedict
Editor, Trading With Larry Benedict<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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