My Litany Of Mistakes - Leaving FAT $$$ on the Table

Discussion in 'Trading' started by ByLoSellHi, Dec 5, 2006.

  1. I am up about 33% since June.

    However, I could have done much, much better had I not been so active.

    Here are examples of big $$$ I left on the table.

    EMS - Bought @ $12.61 - Sold @ $14.20

    It is currently at $17.86

    GT - Bought @ $10.99 - Sold @ $13.59

    It is currently at $17.39

    BKC - Bought @ $13.01 - Sold @ $13.75

    It is currently at $19

    RCKY - Bought @ $10.98 - Sold @ $11.21

    It is currently at $14.35

    Dow - Bought @ $33.80 - Sold @ $36.60

    It is currently at $39.91

    AET - Bought @ $31.97 - Sold @ $39.27

    It is currently at $42.20

    VPHM - Bought @ $9.64 - Sold @ $12.12

    It is currently at $15.30


    Moral of story - Let your winners run.
  2. yeah but if opposite happened you'd be kicking yourself for not selling, can't be perfect all the time
  3. Do you have specific critiera for closing a position?

    If so, just move on to the next trade.

    If not, keep working at until you find something that you can live with psychologically.

    Keeping solid records and a diary are a good place to start, because eventually you're going to see the same patterns played out over and over again.


  4. I hate to admit this, but when a stock gains 20% or more over a very short time frame, I get the urge to sell.

    I need to overcome this.

    I also get the urge to sell whenever something that has run up 10% or 15% gives back 4% or 5% in a day or two.

    I need to overcome that, as well.
  5. Gonz


    Trading successful is difficult becoz its against human natural instincts..
  6. That is why I like to scale out at different points. I always have at least 2 targets. I know we've had the discussion on how scaling out is inferior, but I look at profits from both a short and long term perspective.
  7. It's always a good habit to book a profit. But if you see it's breaking out again, you can get back into a position. You don't have to walk away from a stock after you close.
  8. Good advice. I got excited and exited DDM after a 3% gain. Heh. I should have let that one run...
  9. It is always a good habit to book a profit only if your profits exceed the eventual losses. Obviously, it all depends on the % wins of your system. Besides, it also depends on the potential profits you leave on the table. If you sit on a 20% profit that remains at this level for a while, when other opportunities occur, that you miss because your capital is stuck in something else, you lose potential profits.
    I am more and more moving to time stops instead of profit targets. My stocks should do what they are supposed to do, or else !
  10. monee


    I wouldn't feel to bad about exiting if the stocks later in the run had massive pullbacks which would wipe out almost all profit.

    If the stocks had very small pullbacks and I still exited then I would not be pleased with myself.
    #10     Dec 5, 2006