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Thu Nov 20 2008

Thu Nov 20 2008

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Nerves


don't worry about it... first of all congratulation to have experienced one of the most difficult aspect of trading... meaning the fear of loosing money... I did it and if any investor or trader tells u that they never had they are lying to u... my suggestion if in the future u want to avoid that is to keep a stop loss... about 5 to 8% mine is 8% seems to work for me... stop-loss are set so that if the stock price declines 5 to 8% from ur current price the broker automatically sells the shares... so u don't have head ache... and in case if the price increases it automatically adjust itself to the market price. hmmm i think im blabbing on a little too much 8O but well i hope u get the idea... that is one way that would help... but as its always told better to have small profit than more loss. or something like that... :) chahine


Couldn't have said it better. The beauty of stop losses is that you can have a losing ratio of 4:1 and still be profitable! 4 of your 5 stocks go down and they automatically sell after 5%. Thats 20% loss. And one of those stocks goes over 20% and you have profit. Just never think to yourself " it will go back up" It usually doesn't :( And also its never too late to sell.

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