Warning Warning Warning:
Someone made 2 biggest fatal mistakes in stock trading:
3/02/05
CYTO: bought it and it was a losing trade
1. At closing: It dropped much lower than opening price and was
below 50MA. (never, never, never carry over)
2. Did not want to sell because it was losing money and then
carried overnight (1st mistake)
3. Next day it dropped 50%
4. Bought more shares in hope of averaging the loss (2nd
biggest mistake)
This is not mechanical trading, it is emotional trading.
We are mechanical traders. We trade based on the charts movement.
This person made 2 fatal mistakes.
Lots of people went broke during Internet Bubble by trading this way.
Protecting our capital is in priority at all time.
It is totally against what I teach.
I posted this message in "about us" page from day one:
"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"
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One of the most important element in stock trading is to learn
how to get out in a losing trade without emotion involved. It is
easy to learn chart readings. But this trading mindset can be
a difficult thing for average investors.
All big losses start out with small losses. Just remember if you
have big loss, you may not able to come back tomorrow.
Another similar situation
Cutting Loss
Important Notice
| This Door of opportunity may close suddenly |
Biggest Mistakes
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| Be Careful |
