Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[jenna]

You don't want to be a trader in denial: AMZN puts doing better and better, we're killing them with our short/put plays but sometimes either folks don't want to see how much the semis are down or are in such denial all they see is the margin call and that's too scary to contemplate (by the way I have played on margin once in my life in 1996 and that was enough! I don't trade what I can't afford never let losses add up. Some traders instead of admitting they are in the wrong trend, they decide to increase their share size way up to 'make back the money they have been losing" all the way saying "I'm buyin the dip or I'm a long term holder".

Too many traders, coming up with multiple reasons to justify why they should give the play "just a little more room" average down a little more since they rationalize 'this market must recover soon'. Most often this just leads to a larger loss. In some cases, the stock drops so rapidly they say ridiculous things like, "Well, I can't afford to take that big of a loss, so I'll just hold it." Well here is where a trader becomes a losing investor or worse a trader leaves the profession and looks for another day job.