Adages Quote by William Eckhardt
“One common adage...that is completely wrongheaded is: You can't go broke taking profits. That's precisely how many traders do go broke. While amateurs go broke by taking large losses, professionals go broke by taking small profits.”
About This Quote
Source Book: Trading Strategies by William Eckhardt, 1999
Profits taken too early erode gains; disciplined traders let winners run and cut losses quickly.
In simple terms: Taking small profits too early leads to loss.
Key Takeaway
Let winners run, cut losses fast.
Themes
trading
discipline
risk management
Mood
cautious
analytical
Type
advice
strategic
When to use this quote
- stock market
- forex
- day trading
- portfolio management
Key Concepts
position sizing
profit taking
loss aversion
Questions to Reflect On
- How can you identify when to let a trade run?
- What rules prevent premature profit taking?
A Different Perspective
Small profits may not cover transaction costs or opportunity cost.
