|El Paso, Texas|
|Timing is everything!||1/11/2014 10:00:02 AM|
|When I trade, I expect to be in the money almost immediately (definitely by the end of the day). If I am not, I really think hard about staying in. ESPECIALLY if the trade moves against me and, I know it is best to swallow my pride and take a quick loss.
The same stock may eventually do exactly what I expected, but what is the harm in getting out, protecting your capital, and then getting back in when the timing is better?
Taking small $100-$200 losses brings almost no pain to your trading account. It is when you allow the losses to grow and grow and GROW that your trading future comes into question.
A small loss can easily be made up in the next trade, but when you hold onto a losing trade for too long, it will take you a lot of time, frustration, and stress to claw your way out of the hole.
Always remember, a 50% loss requires a 100% gain just to get back to even!
The best approach is--if your timing is off, get out quickly and wait again for the right entry.|