Probably The Most Surprisingly Outrageous Stock Trading Concepts Of Some Traders

In stock trading, the idea to let your winners ride is a lot more difficult than almost all traders think. To let your winners ride means do not freak out over stupid things.

A trader I know, Steve, sold out of a strong uptrending stock for a 3% gain. Had Steve told me that he discovered something on the stock chart (based in mathematics) that made him choose to take profits, then things would have gone differently.

I asked him what made him sell out of the stock that Friday. He said that he did not like to hold the stock going into the weekend.

What?

Expert traders will usually close out positions on a Friday. You aren’t some institutional trader with huge amounts of money at risk. You’re not a market maker either. You do not have a whole lot of bucks at risk.

Just remember, the objective is to let your winners ride and cut your losers short. If someone makes a rule that you can’t hold a stock over the weekend, then you’re not permitting your winners to ride. You are going to instead be letting go of your winners too fast.

Steve sold out of a strong uptrending stock for a foolish reason. One of the things that shouldn’t bother you is if you should hold over the weekend. Do not stress the small stuff.

Making a rule like you’re not going to hold any stock over the weekend works for professional traders but it is not going to be right for you.

Coming up with rules like this is like attempting to punch your way out of a paper bag while tying up one arm. Do not ever put arbitrary obstacles in your way like thinking I can only make profits Monday through Friday but I have to sell on Friday because I will not hold any stock over the weekend.

A number of traders put a bunch of obstacles in their own way. I recall a trader I met who’d only purchase large cap stocks that paid a dividend. He’s also a Christian and so the company needed to be morally ethical. Additionally, he had quite a long time horizon and for that reason it needed to be a stock that he was prepared to hold for a minimum of 6 years. After he informed me all the rules he used in his trading I just started giggling. I put my arm around him and said that he must either accept the fact that he’s stupid, or that he’ll never make money trading and thus he should get out.

You should not put obstacles like these in your way. Trading is hard enough without tying and arm behind your back, donning only one sneaker, and blind folding yourself.

Let the market show you what you should purchase and when you’re ready to sell. In case you are in a strong uptrendng stock, just chill out and enjoy the ride. That’s the only way you will genuinely be able to let your winners ride.

Leave a Reply

Your email address will not be published.