Win or Lose in the Stock Market

There are only five possible outcomes when closing a stock position. If you can eliminate just one of these possible outcomes then you can be profitable in the stock market.

From worst to best the five possible outcomes are: Big Loss, Small Loss, Break Even, Small Gain, and Big Gain.

Eliminate the worst of these possible outcomes with a stop loss or price alert and your capital gains may increase.

However, keep in mind that a price alert will require action (on your part).