OK - lets get back to basics.
In all the years I've been investing, speculating, gambling or even taking a chance, I've only been successful when I follow the oldest "Mantra" on the books.
Cut your losses and let your profits run.
Markets, prices, value etc have discernible "trends" which goes on for quite long periods of RELATIVE time i.e. for days if you're looking at the market every couple or so days, for hours if you're day trading etc.
Get on the hopefully correct side by examining the fundamentals of the particular stock/commodity/whatever (to the best of your OWN ability, knowledge, experience etc - and do NOT rely on other's tips, usually biased opinions, suggestions on sex boards etc), put on your Stop losses (which needs to be continuously re-set/trail re-examined) and sit back and relax. You'll eventually get stop lost - which hopefully will occur at much higher prices (If long) - thus only getting out when the market has well and truly turned.
Follow the above religiously and without fear or worry - and if you can make one $10 profit for 3, 4 or even more $1 losses along the way - you'll be ahead.
And YES - do NOT stare at the monitor all day long - let the stop losses do its own work and relax!
Just my own way of doing things
SEAJ | |
