I need to learn how to control my emotions and how to keep my greed in check.
Keep 10 one hundred dollar bills in your desk drawer. When a trade is up 400 bucks pull the 400 bucks out and look at it, feel it, realize how real it is and what you could spend it on. Then do the right thing, close the trade.
Interesting discussion here. Some ideas: 1. There are NO rules to follow. It's personal. 2. Never ever become a pig. You have a small profit close and move on. 3. If it goes against you, get out IMMEDIATELY!! Cutting losses immediately is the most important issue of all. 4. Never hold positions overnight. 5. Do NOT trade on Fridays if you can help it. 6. Watch constantly the trade in relation to the 20 and 50 EMA on a 1 or 5 or 10 min. chart. Remember that all traders watch these charts continuously. Know how to interpret support and resistance levels. Try to figure out what make cause a breakout one way or the other.
Mick: Or anyone. I am not a daytrader. Before the days of screens and streamers I would buy a stock and check it a couple of times a year, Usually it would have gone up 20-50%. What has happened to buy and hold? Is that principle gone forever? Thoughts on that subject anyone? Pretty interesting discussion and a very straight forward board compared to others on yahoo. What are your thoughts on scur? I think it has potential for a rebound (another security stock). Still Magal has not begun to penetrate the market. Would buy and hold apply here? What ever phenomenon caused it to soar, could it happen again?
I've been trading for a long time and have compiled about 350% total return since '98. That was until MAGS...and now I am down 50K on it. I usually follow great rules and know how to read charts. This one was just stupidity.
Always cut your losses fast so you have chips for the following day. If you are winning on a stock let run a bit but don't get greedy. I hope all the people that lost will get some of their cash back.