The very first thing to learn in stock trading is to get out of a losing trade. This new student has a major problem for cutting loss. I post this to point out the importance of proper mindset for cutting loss. Today I sent out a warning to this student again. Date: Fri, 1 Apr 2005 11:19:47 -0800 (PST) Dear friend, On last Monday 3/28/05, when we met, you showed me a list of stocks which you were holding. I told you that most of them were in downtrend and the overall market was also in downtrend, that meant you might lose more money if you were not willing to sell them. Next day, you did not listen to me, instead you tried to buy more stocks in hope of making some money. You ignored my advice. Few days later today, overall market does come down and your holding would lose more value if you are still holding those stocks. The stock XYBR is dropping 45% today alone. This is one of your holding. I told you on Tuesday, you must cleaned up the stocks which were in downtrend based on the charts i set up for you in esignal. I even warned you that if you did not cut loss, the loss could go bigger and you might get into bigger problem. I have given you my professional advice, and you were not listening. You don’t have any knowledge about stock investment yet. This is a very difficult situation for you. I teach mechanical system for stock trading. This is pretty reliable. But i can not help you to recover your previous loss. I am giving stock education to investors for the proper way to invest. But we must have discipline. You must change your mindset about stock investment. www.traderhuang.com/aboutus I find out the most difficult acts to take as a trader is closing a losing trade, my discipline overcomes that. Once I have established this type of mindset, it has become easy and lead to success. Bull or Bear Market, the system works Good luck _____________________________________________________ Another student asked me this question: Fri, 1 Apr 2005 Hi Mr Huang, I just wanted to ask you a question. I noticed you said the stock XYBR dropped 45% today and thats a huge drop. My question is do you think since it dropped so much its the right time to buy a lot of shares of it. DO you see it moving back up since the stock does not have much more to drop before it hits 0 Please let me know. Thanks Nick My answer to him: We are not smart enough to buy at the real bottom. Your way of thinking to buy at the bottom is the most common mistake for average investors XYBX is a penny stock. It can go into Bankruptcy. We do not want to have this kind of risk. Never buy because you think it is cheap. We buy only when the stock is in uptrend. |
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