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Re: None

Wednesday, 02/26/2020 2:56:09 AM

Wednesday, February 26, 2020 2:56:09 AM

Post# of 553
Don't become a Stuckholder! Easier said than done. When buying bottom bounce plays there is always the chance that the chart breaks down. In that case there is the danger that the price keeps going lower and lower.

Instead of this being a 'great buying opportunity' it is actually a time and resource heat sink.

Every so often I still get stuck. Currently I have three positions that have taken my resources and brought me to a point where I cannot sell except for an unacceptable loss.

Do I think there will be a turnaround?

Yes.

I just don't know when that will be. In trading patterns from my history the turnaround is usually a few days after I sell at the bottom.

Ouch!

The way to avoid this is to sell when the losses are small. It is difficult to do sometimes. The greatest thing since sliced bread could easily become a nothing burger. But even then, there is always a chance that there will be a bounce. Waiting for that bounce has to be done with limited funds. If all monies are stuck in waiting there is nothing left over to take advantage of new opportunities.

Plan the trade and trade the plan. Don't wing it! This is the toughest lesson to learn and the most important difference between making money and just straight up gambling.

Precious Metals

DJIA

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