In trading you have to be defensive and aggressive at the same time. If you are not aggressive, you are not going to make money, and if you are not defensive, you are not going to keep money.
Core idea
Successful trading requires a paradoxical balance: boldly pursuing opportunities to grow capital while rigorously managing risk to protect and preserve existing capital through inevitable market adversity.
Practical application
To be a better investor, push your winners with conviction but always cap your downside with diversification, position sizing, and disciplined stop-loss or exit rules.
Why it matters
The special insight is that enduring trading success hinges on simultaneously maximizing upside through conviction and systematically minimizing downside through strict, preplanned risk controls and capital preservation.
