Want to know the deadliest error committed by Traders? Failure to accept and close out a losing position.

What is a trader's most precious resource? Besides his intellect, it is the trading capital. Fail to protect your capital will guarantee that you fail in trading. We have witnessed newbie traders blow out their accounts countless times by ignoring this simple advice.

How do you protect your capital? By taking fast, and small, losses is the only way to effectively protect your capital.

Seems simple and logical enough... so why do most traders fail to follow this advice? Because they are unwilling to accept that they have made a mistake. Beginning traders expect to be perfect in their trading calls and their unreasonable expectation causes them to avoid accepting the loss in the initial stages.

Emotions are 99.9% of trading and the key emotions are hope, greed and fear. In this case, many traders are hoping that the trade will come back to them so they don't have to book a loss.

Key Advice: As a trader, be willing to accept that losses are a part of trading. Understand that no service, indicator, strategy, advisor can deliver trades that will be profitable from the get go and deliver consistent profits. It does not exist.

In life, we say that when the going gets tough, the tough get going. In trading, success is often determined by how well traders manage their losses. Learn to manage your losses and the profits take care of themselves.

This is the way to consistent profits and a long career in trading.

In addition to consistently cutting losses quickly when small, never place a trade without first determining your stop loss. In today's market, having a near stop loss can easily get taken out and some traders work with mental stops. If you have the mental discipline of a mental stop loss, that's fine. The idea is that you want to set up a system that takes out the emotion in trading.