Don't pay dollar to keep 2 cents when wrong. Cut your losses quickly. Trade what you see, not what you think.
Joined Oct 26, 2011
719 Blog Posts

The plate is hot!

Market opened higher!  No follow-thru from yesterday big down day.  Stocks I sold yesterday were much lower now even with Dow Jones up 100+.  Time to test the water and do some bargain shopping!

Yes, some of these there… yeah, that’s one too.  Wow, that’s one still on sales!  (Btw, I’m only picking those that hit the bottom of the Bollinger band).  While sitting back to enjoy my new purchases, I realized that the plate I used to hold these purchase was getting warmer… before I knew it, it was hot!  Ouch!

What do you do when you touch a hot plate!  You snapped your hand away so fast you could punch yourself in your face if you didn’t get your head out-of-the-way.  I sold all my new purchases without even thinking about it.  Do you think about moving your hand when it is being cooked on the hot plate?  Unfortunately, I didn’t get my head out of the way fast enough so I kind of punch myself in a face a bit.  No worry, no bruise.  More like a slap on the face.

And thus begin another day of trading without thinking much.  Trust me, you don’t want to think much when trading.   Going in=Action; getting out=Action.    It is that simple!

Don’t be like: Going in=worry… OMG!… “Why me!?”… tear forming… keyboard on the wall… endless debate on the wisdom of cutting losses quick… frozen to headlight syndrome… = Inaction.   Meanwhile, you butt is getting really red from sitting on the hot plate!  Ouch!  Why do you want to do that?

Be careful!


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