I know most of you are clicking in to read about what stock I bought and/or can’t wait to read about this lack of discipine or how degenerate the stock was. But, that’s not the case here.
Over my time here at iBC, I’ve been quietly building franchises on the side in the great state of Louisiana, no Rick Ross. To date, I have setup 5 different companies, all franchise related, that have nothing to do with stocks.
My very first company I sold a few years ago for a large sum, it was a great success. A lot of work, but a great success. I have yet to sell another business until this point. The one I’m closing on this week is my newest company, and it’s time to stop the bleeding.
I had two choices basically:
A.) Donate the business, but collect rent since I own the building.
B.) Pay a hefty penalty to get out of my franchisee contact.
Lucky for me I own the land and building so (A) was the easy choice.
I wrestled with the decision for many many months, should I keep it? Hold on to it until it turns? I finally came to conclusion to take the loss and refocus my time on what is working.
I can easily relate this to stocks as it is a reminder to cut losses quick, especially in a sector or space that you have no desire to be in. Holding onto a bad stock/company is just no good. It’s clouds your judgement, hinders your ability to make sound decisions. Most importantly, hinders growth.
While it’s true, I took a big “L” here in the form of buildout costs, equipment, and a lot of sweat. I feel great about the decision and look forward to how I can use this setback to further my career.
If you find yourself holding on to a bad stock, why not free yourself and refocus? Use the loss to learn from. And, if your emotional state is not 100% after the loss, wait to place your next trade. Emotional capital is everything. It’s what separates good and bad traders. Remember that.
As for today’s market, the bulls had a decent showing and held some key levels. Here is today’s momentum scan: CLICK HERE FOR CHARTSIf you enjoy the content at iBankCoin, please follow us on Twitter