There’s never anything wrong with taking stock off the table
So many times we get involved in a
situation where we are in a trade for the right reasons and everything is going
in our favor. And then all of a sudden, the stock starts doing
something different. If you are long, the stock starts coming down or it starts
pausing. Before we know it while we are holding our position, we give back a big
portion of our unrealized gain. And in some cases, we even lose money on the
trade.
It’s a big pitfall us traders get ourselves into. We don’t
lock in profits and take stock off the table. The reason we don’t is because our
emotions get on this little high and we feel that the stock is going to go
further in our direction. Perhaps it might, but when we start listening to our
emotions we fail to listen to the stock.
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