The Greatest Surprisingly Ridiculous Stock Trading Rules Of Many Traders
The Greatest Surprisingly Ridiculous Stock Trading Rules Of Many Traders
In stock trading, the old saying let your winners ride is much more challenging than almost all traders assume. A trader I know, Steve, sold out of a strong uptrending stock for a 3% gain. The following Monday when trading commenced, the stock continued to go up. Steve was bummed that he did not keep the stock longer.
An important part of just how I educate stock traders involves examining their thought processes and their reasons behind doing things. Had Steve explained that he noticed something on the chart (based in mathematics) that made him prefer to book profits, then things would have gone in a different way.
I asked him what made him close out of the stock that Friday.
WTF?
Expert traders will usually close out positions on a Friday. You're not a market maker either. You do not have a whole lot of funds in peril.
If someone makes a rule that you cannot hold a stock over the weekend, then you're not permitting your winners to ride.
Steve sold out of a strong uptrending stock for a foolish reason. You can not sell out of stocks for dumb reasons if you wish to let your winners ride.
There is likely to be loads of issues that bother you in stock trading. One thing that shouldn't bother you is if you should hold over the weekend. Do not sweat the small stuff.
Making a rule like you're not going to hold any stock over the weekend works for professional traders nevertheless it's not going to work for you.
Coming up with rules of this nature is like attempting to punch your way out of a paper bag while tying up one arm. Do not ever put arbitrary obstacles in your way like thinking I can only make profits Monday thru Friday but I have to sell on Friday because I will not hold any stock over the weekend.
Some investors put a lot of obstacles in their own way. I recall a trader I met who'd only acquire large cap stocks that paid a dividend. He's also a Christian and therefore the company would have to be morally ethical. Finally, he had a long time horizon and for that reason it had to be a stock which he was willing to hold not less than 5 years. He came to me and desired to understand what I could do to assist him in becoming a profitable trader as he wasn't able to make money in the stock market. When he explained to me all the rules he used in his trading I just started laughing.
Trading is hard enough without tying and arm behind your back, donning only one sneaker, and blind folding yourself.
Let the market show you what to purchase and when you're ready to sell. When you are in a strong uptrendng stock, just chill out and enjoy the ride. This is the best way you'll genuinely be able to let your winners ride. Accredited Online Bachelor Degree Learn Forex Currency Trading Online - Important Guide What Can I Do With an Online Criminology Degree Grab Iron Maiden tour Tickets online Buy X Factor Live Tickets online Online Bachelor Degrees for All Online Degrees - Good Choice for Working Adults Perfect Discount Ugg Boots Online Earn An Online Income, How To Choose One Individuals and Astrology Online - Fairly a Sensnation Dokteronline Review and Coupon Codes Online Stores: Clutch Spring Handbags Today Watch Atlanta Braves vs Philadelphia Phillies MLB Scores Online Live