StockFetcher Forums · General Discussion · Why didn't I get out when I was ahead...or breakeven?!!<< >>Post Follow-up
nikoschopen
2,824 posts
msg #59240
Ignore nikoschopen
1/22/2008 12:49:06 PM

I hope the title of this thread won't rub anyone up the wrong way. Of course, we all intuitively know when we should have or could have take our profit in hindsight, let alone would have had we given another chance. But I believe this is a very important subject matter that's requires another regurgitation. It ain't what you can make but what you must retain in order to survive, if not trade, for another day. The moral is that you should keep a tight lid on ure losses, namely, don't let a small loss turn into a gargantuan loser. Above all, keep ure cool. It's even okay to give back all ure profit, as I'm prone to compulsively repeat time after time. But when it breaks below ure entry point, you shouldn't hesitate to pull the trigger. Not only will this save you from potential losses, but it will keep you from becoming demoralized. Needless for me to point out that you can't think straight when ure neck deep in losses.
Once you know when to cut ure losses,
the profit will take care of itself...


maxreturn
745 posts
msg #59242
Ignore maxreturn
modified
1/22/2008 1:53:08 PM

Yes Niko. As of Friday's close I was long a put option on BSC and was up over 35%. We all knew the market would likely gap open to the downside today and then the fed makes their announcement. So I planned on exiting my position on the open if this scenario played out, which it did. Had I followed my plan I would have been up over 100% on this play, which lasted only 3-4 days. Instead, I decided to sit and watch the price action intraday, knowing that the stock would likely rally, but hoping for a short setup on the 5 minute bars within the first 15 minutes or so to stay in the position. It only took two 5 minute bars before it became evident there was HUGE buying power in this stock so I exited at the market. I still made over 60% so I'm not crying. But your point is well taken. Have a plan before the market opens the next day and FOLLOW IT!

nikoschopen
2,824 posts
msg #59243
Ignore nikoschopen
1/22/2008 2:14:34 PM

Max, Well done. As you may already know, a loss is part of business. It's simply unavoidable. Even the best traders take a hit once in a while. However, what distinguish them from the average joe-sixpack is that they take a controlled risk that maximizes the return and minimizes the loss. I reiterate that this game is all about risk and reward, and how you control the former while leveraging the latter to ure advantage.

StockFetcher Forums · General Discussion · Why didn't I get out when I was ahead...or breakeven?!!<< >>Post Follow-up

*** Disclaimer *** StockFetcher.com does not endorse or suggest any of the securities which are returned in any of the searches or filters. They are provided purely for informational and research purposes. StockFetcher.com does not recommend particular securities. StockFetcher.com, Vestyl Software, L.L.C. and involved content providers shall not be liable for any errors or delays in the content, or for any actions taken based on the content.


Copyright 2016 - Vestyl Software L.L.C.Terms of Service | License | Questions or comments? Contact Us
EOD Data sources: DDFPlus & CSI Data Quotes delayed during active market hours. Delay times are at least 15 mins for NASDAQ, 20 mins for NYSE and Amex. Delayed intraday data provided by DDFPlus