Jim Cramer's Second Commandment of Trading

"I thought RIMM would come back eventually...."

I'm sure everyone who reads 17and17 knows the difference between a stock trade and a stock investment by now.  If you don't please go and read the post from a few days ago that describes the difference in detail!  The second commandment of trading is, 'Your first loss is your best loss'.  This means that when you lose on a trade because the catalyst doesn't make the stock react the way you planned you need to exit the trade buy selling your stock shares.

Missing on a trade or having your trading thesis proven wrong sucks!  Just look at the guy above, he is crying over it.  As hard as losing on a trade can be you have to steel yourself to the fact that everyone loses on trades and investments.  Winners cut their losses quickly and maintain discipline.  Losers make excuses and refuse to believe that a trade went against them.  A loser will then lose even more by hanging on to a trade that failed and making into a larger problem; a failed investment.  Make your first loss your best loss by staying disciplined and cutting your losses quickly.