In or out

Discussion in 'Trading' started by kybandit, Apr 12, 2011.

  1. orl

    orl

    I would advise you to develop some sort of risk/trade management rules to avoid giving it all back.

    Good luck!
     
    #31     Apr 15, 2011
  2. piezoe

    piezoe

    That was the right thing to do under the circumstances regardless of what POT does next. Follow Nodoji's advice and suggestions. Always know where you are going to put your stop when you enter a trade. Then put your stop in place pronto and never move it except to tighten it if the stock moves up sufficiently. Pay absolutely no attention to those posters that say they use "mental" stops. You want to place your stop loss order in a spot where your own technical analysis (not someone else) would indicate your reasons for entering the trade would be invalidated. If hitting that stop would entail a greater loss than you are willing to take, don't take the trade.

    I should mention one other point since you're new to trading. We have been in a strong Bull market these past months. In that kind of market it is relatively easy to make money. You must adjust your trading to market conditions. Therefore it is not only important to pay attention to your positions, but to the market in general. When the market is going up, most stocks will also go up, and when it goes down most stocks will go down. It is unlikely that the stocks you own will be exceptions to this rule. Consequently you want to be cautious about taking long positions in a falling market and vice versa. You always want the market to be on your side.
     
    #32     Apr 15, 2011