Good Investing Lessons

Never Turn Trades into Investment When the market move against you, cut loss. If you are hoping for the trade to turn good, you know you are done. What is the probability of a bad trade turn good? How long will you wait? Your First Loss Is Your Best Loss When you trade turn awry, cut loss fast. The subsequent loss is likely to be more severe. When a stock is down, its momentum tends to move it down further. The only hope you have is when there is a knee jerk reaction where the sell down comes with spike in volume. Chances are you will get quick reversal. Other than that, just cut off and move on. It Is OK To Take Loss When You Already Have One Losses, realized or unrealized, are actual losses. Unrealized losses if not taken, may lead to bigger losses. Don't let you capital sit there even if the capital is depleted. Move them to a better place. Never Turn a Trade Gain Into Investment Do not be too greedy. Know when to get out. Market can turn anytime. When it comes, it may be