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Re: alstocks post# 575

Tuesday, 05/21/2019 2:27:56 PM

Tuesday, May 21, 2019 2:27:56 PM

Post# of 10036
I think it is a normal reaction to bask in the euphoria of winning. It is similar to getting to the finish line and celebrating without actually crossing the line. Cross the line by locking in your profits people. It isn't real money until you close the position.
Another thing that helps is to realize that the extra profit you are thinking about is usually very small and has a high risk to reward given the current price. This 'delusion' happens because we often base our percentages on the initial position and not the current pps.

Practical example:
Person A opens a position in stock xyz at .01 pps.
Next day, xyz hits .2 pps.
Person A, on being promised the moon (say .5), decides not to close his position waiting for the moon landing.

This is a big mistake because Person A thinks of the move from .2 to .5 through the lens of .01 - .5 (which is a 50 bagger), but it is actually a move from .2 to .5 (which is just a 1.5 bagger). Seeing it this way helps put things in perspective. Why risk a 20 bagger for a chance at an extra 1.5?


With that being said, take profits responsibly by placing your sells on ask!

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