Don’t wear out your welcome!
Profits are our top
priority as traders, so it’s vital to know when to book them and pay yourself.
I was a professional golfer for a few years right out of college. A local
country club allowed me access to their facility as a courtesy as long as I
didn’t overstay my welcome. If they were hosting a tournament or it was a busy
day with lots of members around, I slipped away and found another place to
practice. Had I stayed too long, they likely would have asked me to leave, which
would have been costly to me. As a result of my respect for them, we had a great
relationship and they were happy to extend their facilities to me, knowing that
I would not impose on the freedom of their members.
Similarly, successful trading should be the same
way. When you make a profitable trade and a stock meets your criteria for exit,
don’t overstay your welcome!
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