A tight stop strategy may seem like a good idea…it lets profits run and closely protects gains. But as you can see, being too protective of profits could cost you a lot of money.
You don’t make money when you buy — you make it when you sell. I’ve seen many traders come and go over the years. One of the leading reasons they fail is due to poor exits. Their mistake often comes down to one of two things.
What really matters, in my view, is your selling strategy. This has the greatest impact on your trading results. It’s the swing factor that separates the best traders from the pack. I talk a lot about letting winners run and cutting losers.
‘Will I ever be able to do this?’ These words can creep into our minds when a goal seems beyond reach. We think about where we are — then where we want to be — and wonder how we’ll ever get there. Now, this can apply to anything. It could be with trading, business, sport or study.
So don’t be too hasty to walk away if you miss a buying opportunity. Instead, weigh up your potential regrets — what will bug you more: a relatively small loss or a big missed profit?
They say your biggest regrets are not what you do, but what you don’t do. And do you know what? I agree. It’s the opportunities I let go that linger longest in my mind.
Hunkering down may feel safe. But historically, it’s a risky strategy. Most of the time the world moves on without you — all the opportunities go to those that stay in the game.
Now, scroll your eyes down the list. Only four stocks are from the ASX 200. This is the subindex many fund managers focus on. And if you prefer big caps, only one ASX 50 stock makes the list. Here’s a summary of the data.
Starting out is a unique time — and it doesn’t matter how old you are. You can start something new at any age. I’ve done this many times. Two words describe my emotions at the start of a new venture: enthusiastic uncertainty.
Sure, trading may seem easy in theory. But it’s much harder in real life. One of the biggest challenges is dealing with the lean times. These periods never pass as quickly as they do on a chart.