# How to Build Massive Wealth on 10% Winners

Canonical: https://stocksurgedaily.com/how-to-build-massive-wealth-on-10-winners/

Buying is easy. Selling is hard.

Yet, most investors think the opposite is true.

They think finding the perfect entry point is the “holy grail.”

Spoiler alert: It’s not.

When and where you sell is the single-most important contributor to your success as a trader.

And that applies to both winning and losing trades.

On the downside, it’s simple – work tight stops and keep your losses small.

It doesn’t matter if your trades only work out 40%-50% of the time…

If you are cutting your losses at -10% each time, you can still achieve extraordinary results.

Don’t believe me?

## **Tale of Two Traders**

Take a look at the win/loss table below, which shows the results of two different traders…

![](https://lh5.googleusercontent.com/Edkj2x4x5foBkZB1r49UxGBo0unL2M_zktXUcNJtFFcva6A6lnF4-0_BNxEqJ2HD5kcVn1Se6JopYg_091zAzNXhAA7ILG7_OH9QrGyUIyJYdN1EsmqVhMZqvfUDF_LHMAsGB4DZMZQ)

Both made 20 trades – 10 winners and 10 losers.

Both traders had a 23% average gain.

And both traders averaged -10% per loss.

But their net returns are drastically different.

The first trader (left column) lost just 2% on nine out of 10 trades but suffered one major loss.

The second trader (right column) lost 10% every time she was wrong.

The net loss is the same.

But the trader who capped her losses at -10% generated a 168% return.

The other one returned just 15%.

The order of the trades is irrelevant.

You can move them around however you want, and the results will be the same.

This should be an eye-opening moment.

## **Pop Quiz!**

Now, let me ask you another question…

What would produce better results?

Making 100% on 10 trades and losing 50% on 10 trades…

Or making 10% on 10 trades and losing 5% on 10 trades?

It’s not a trick question.

Most people think the result would be the same.

But most people are wrong.

![](https://lh4.googleusercontent.com/FghGJoEyg9UDT45mzQpCZdb2ZyeRuFe31WQkw1zij1nT8M9fNKfNf7tWpKB--t6vcdpcdavEpXIUkLpm4CMPPfAicyasdpPa_mqs2HeFqiuH7GgU5r1-HAJTwJDWglCUlRWZVbEM_5g)

The trader with 100% returns on 10 trades and 50% losses on 10 trades broke even.

The trader with 10% returns and 5% losses produced a 55% return.

And which do you think is easier…

Finding 10 trades that make 10%, or finding 10 trades that return 100%?

It’s a no-brainer.

But most folks don’t realize the power of taking small gains and smaller losses.

## **Nothing Funny About Money**

People laugh at 10% winners.

But no one laughs at a 55% annual return.

Those gains compound quickly.

![](https://lh5.googleusercontent.com/ewHajv0Lj-YNYyaDoDc0Cr4le2KubFrmdV6ggtnq_nB_cEwo5NSxnvEw_pZgn6x1fuXnym8CO3RNHDOlfm7YNeNhvt4yRQWN0Unjp_AQxgM_dXekux1OCjEOw1eRb4bPO_MoCi962ao)

Yes, you’re reading that right.

$20,000 turns into $1,600,836 in just 10 years.

Can you find 10 winners of 10% each year?

Can you set a 5% stop loss?

If so, that’s all you need to build a seven-figure portfolio.

## **Try It Yourself**

Create your own spreadsheet.

Play with your numbers.

You will be blown away at the results you can achieve by simply avoiding any big losses.

You don’t need a slew of triple-digit winners to see huge growth.

Just be disciplined.

Be consistent.

And keep those losses small.

## **Trade the Tunnel**

Now, if you’re going to start racking up smaller more consistent wins, you need a plan.

And you need a way to find intraday opportunities. For my colleague and expert trader Josh Martinez, this is why he developed his **_Tunnel Trading_** strategy.

Utilizing this strategy, Josh has been identifying shorter-term up and down entry and exit levels for profitable trading opportunities along the way as markets eventually move up to their full upper price targets.

[**To learn first-hand from Josh about how this works and could work for you, click here to register for his special LIVE session today at noon!**](https://register.gotowebinar.com/register/8488520460019500555)

Embrace the surge,

![](https://lh4.googleusercontent.com/BaCTJclZ56I4xGFHgXf67g1ppALaRk51xiw9rSRt9MiRVR21OhpS0yqiCIxrE5sKu8wcY-yLlpisWWofWQlAqwVc_5NSpvhAh3wBetJGiI8Elk9dgyHiq4jJFz45pbbLi2F_HWXDWW0)

Ross Givens  
Editor, **_Stock Surge Daily_**