Take The Money

For short-term trading, there is not much beating the momentum of the stock is on fire, and we just hop on a short ride and bounce off. This is the life blood of short-term or should it be in advance of revenue during the period, parts to play or news driven by pure momentum play. One of the biggest mistakes you can make in the game is hanging on too long.

One often hears the phrase "I was on ABC, but now I'm down." The first question should be "why did you not sell when you have been up to?" The answer may be various, but generally the answer is something like this: "I was confident that he will remain higher, so I kept it. Then, when it began to fade I figured it would be just temporary and it will start back up." Bingo! There lies the problem. If you have had the same story, we ask you directly, where you were before, why do not you sell? " If your answer was, because I thought it might be higher, that is fine, but when she began to wane, why can not you sell it?

This is a question that returns all kinds of confused responses, but the fact is, we are emotional creatures and we love it when our emotions are positive. When stocks are rising, so we really can see the acquisition of human pride. They smile, their chest, and chin is up. It is not surprising as we have done something and it comes our way. But too often, our taste is that "good sense", we make mistakes that cost us significant dollars.

Look at the dealers when they are losing compared to winning the marketing trade. If you are a winning trade, you want to tell the world about it. We are social animals and nature, we would like to show a little bit, and what better way than to say: "Well, I bought the ABC 50 and now 58? All of the body and the mind actually functions better. But what happens when we lose the sale? We tend to keep quiet. We do not want to tell the world we just screwed up. We begin with a statement of reasons, save that the stock we have chosen is good and if we just give it enough time it will come back. We sit a little lower, we decline at the shoulders, and we grumble over the things that usually do not bother us. In fact, we offer one of the reasons why we do not like to lose the sale to sell off the unconscious humility with regard to telling the other person (your agent), we want to sell losing positions.

So that all the above, please, if on the goods, take their money home. Do not let the stock fall and try and hope to return to the top. The way to do this is to stop and if you can not do or feel uncomfortable with them, at least in mental stop and stay with them. For example, suppose you want ABC to move higher this week. We buy into it on Monday and paid 50 per share. Tues it is at the 52nd Wed It is 52 ½. Thurs the 53rd On Friday, the market sours and now its the 49th If you're still, you are now poor trade. The way to play it would have been the stops. Remember, we bought it, and 50 on Tuesday was the 52nd It has great marketing, but we believe the ABC, which ended his party and should go higher. So why not tell the dealer if we want to save it drops to 50 ½? This gives some wiggle room inventory, but still allows for a small profit, if it supports up to. Now we see their Wed 52 - ½. Move your stop to 51. Thursday rose to 53.

Move your sit up even tighter, so you keep more, if it weakens, say the 52nd Now comes Friday and the market is pouting as you decrease the ABC would not sell out and say at least 51 phone. You bought at 50 and made a phone. Of course, this may be a temporary pull back and it could be higher. But it could fall like a rock. In any case, you did a good trade! If markets are functioning better when ABC wants more to buy it again. But again the use of stop watch.

For up to stop the use of so simple that everyone should do, and not too much is as effective as they keep you moving stocks while limiting its downside. The bottom line to all this is very simple. Do not be afraid to take your money on the table. It's much better to have a phone about something than to be trapped into something. You never go broke-profit, no matter how small it may seem. So, no fence, swing, and when your product starts to weaken, the escape, and if you have some of the money market, rather than hoping it comes in and they will!