copied from Larry Holmes of www.cashflowresources.com"You know, I started my financial career as a young ladon Wall Street about 27 years ago.During that time, I've observed literally thousands ofinvestors. Most of them have been pretty bad. Some havebeen OK. And a precious few have been great.The great investors (traders, speculators, whatever)have had very different styles.Many have been long term, buy and hold types. Othershave been more intermediate term traders. I've alsoknown day traders and swing traders.They've also varied in terms of their investments -stocks, bonds, futures, real estate, precious metals -you name it.Not only that, they've varied in terms of theiranalysis. Many have relied on fundamental analysis.Many have been pure chart readers. Others have been ablend of both.But the great ones have one thing in common - theyunderstand that money management is everything.Warren Buffett and William J. O'Neill are verydifferent investors. They take an entirely differentapproach and end up investing in very different stocks.But they're both great.However, they totally agree on what's most important.Warren Buffett says the #1 rule in investing is "Don'tlose money." William O'Neill say the #1 rule ininvesting is to "protect your investment account".For example, I recently bought three stocks -Occidental Petroleum, Cabot Oil & Gas Corp., and LNRProperty Corp. Will I make money in those stocks? Idon't know. And I honestly don't care. I do know thatthe odds in my favor.But if I don't make money in those particular stocks, Iknow my assets will still grow. Why? Because I have aplan. I have a strict entry and exit strategy. I'lljust get out of those stocks, protect my account bytaking a small loss, and move on the next one where theodds are in my favor.So, in the long run, I can't lose as long as I'm a goodmoney manager."
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