How to Buy a Stock | OVTLYR University Lesson 14
The Only Four Things That Can Happen
Introduction
Every trade outcome fits into one of four categories. Once you understand these outcomes, and your job in each, you’ll stop overreacting and start trading with clarity and purpose.
1. Outcome #1: Small Loss
● You followed your plan, but the trade didn’t work.
● You exited at your stop, no hesitation.
● This is a win, because you protected your capital.
Discipline in a losing trade is still a success.
2. Outcome #2: Small Win
● Trade moved in your favor, but not far.
● You took a partial profit or a quick exit when momentum stalled.
● These add up over time and build confidence.
3. Outcome #3: Big Win
● Everything aligned: setup, entry, management.
● You held through the trend, exited on structure break.
● These trades pay for multiple small losses.
Letting winners win is how pros get paid.
4. Outcome #4: Big Loss
● This is the only bad outcome.
● Usually happens from:
○ Breaking your stop rule
○ Averaging down
○ Trading emotionally
● Avoid at all costs.
5. Your Job as a Trader
● Eliminate big losses through discipline.
● Accept small losses as normal.
● Let small wins happen naturally.
● Give big winners room to run.
You don’t need to be perfect. You need to be consistent.
This wraps up Lesson 14. Now you understand the four trade outcomes, and your job is to maximize the right ones while eliminating the one that ruins accounts.
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