Recently I watched my favorite football team lose a vital game.
I simply love this team.
I became so emotional about it; I thought "?this isn't good for my health". Can you believe that, but that's how we get when we are passionate. I simply couldn't believe (I didn't want to believe) they could lose.
However, as a committed fan, I was going all the way with them. If they were going down, I was going down with them. After all, you don't give up on your team simply because they don't win every game. On this occasion, I was so wound up, willing them to win, knowing all along they had blown their chances.
I really should have walked away from the TV. However, I stayed for the pain. Oh, the exquisite agony. At the end, my shoulders and head were down, I felt like I'd run a marathon and deeply felt the loss for the team and myself. Was there life after this game?
I should have been saying to myself "? they've done well considering they're a young team, they've done better than expected, so save yourself the heartache and face the fact?this season is not theirs?emotionally detach yourself."
As I was lying on the settee, absolutely exhausted, analysing why I'd put myself through it, my mind went back to my early days of trading. We all go through this and hopefully only in our very early days ? when we learn a few painful lessons. For some, it's enough to put them off trading forever.
We buy a stock, believing the price will go to a higher level. We know it will rise, because it's a blue chip and the indicators all line up. There's no chance this will turn against us. It's a stock we love because we've followed it for some time and it's a household name ? it's been a great performer for years. Of course, we've got our mental stop loss sorted out before we go into the trade.
However, it does turn against us. Because we love the stock we see our stop loss taken out and what do we do? Nothing!
We love this stock and it will definitely bounce back. But it doesn't and like a sports fan, you stick with your "team" and with every decrease in price, you feel that pain and you rapidly go down too - you too are a loser, not only in the sense that you've gone against the rules, but also you've lost your money.
Just like your favorite team, you can't win every time. So, to protect yourself against losing, get out when your stop loss tells you ? don't let your love for a stock paralyse you. In this way, you'll sustain a small loss, but have enough money left to go in on a winning trade.
So, never attach emotion to a trade ? treat them all the same and trade your strategy. And always have a stop loss in place. Don't rely on mental stops as love can make you do crazy things!
NEVER FALL IN LOVE with a stock.
David Chandler
Ordinary People Making Extraordinary Profits!
For free mini-course on stock and options trading click the following link:
http://www.stockmarketgenie.com
Or visit our blog at:
http://www.stockmarketgenie.com
The above comments are offered for educational purposes only. We are not providing you with financial advice. We are simply sharing with you what has and hasn't worked for us personally. If you wish to trade or invest in the stock market you should obtain advice from a registered licensed advisor.
recurring maid service Buffalo Grove ..One of the basic laws of physics states that a... Read More
This is the continuing story of our two imaginary traders,... Read More
Spread trading is a technique that can be used to... Read More
Let's say you are interested in this one company. You... Read More
When most analysts, financial planners, fund specialists and investors try... Read More
If you haven't heard of the technical indicator with the... Read More
Picking a beaten-down stock requires a different kind of selection... Read More
Just about everything you have been told about Social Security... Read More
You have a lock on your house. You have a... Read More
We've all heard of the stock market and probably have... Read More
Over the past few months, several investment professionals have brought... Read More
I constantly hear the talking heads on CNBC-TV, the radio... Read More
The Winter Games for the Olympics are coming up soon... Read More
Three little pigs went to the market to stock up... Read More
One of the great truisms of Wall Street is "Don't... Read More
Every broker and financial planner will tell you that you... Read More
According to Investopedia Inc. the penny stock market has seen... Read More
With an insecure job market, overworked employees, insufficient retirement savings... Read More
You remember (they show it on TV every year) the... Read More
Mutual funds were moderately successful in creating a presence in... Read More
Do you have a financial planner? Does one of your... Read More
One of the great "secrets" of successful people is discipline... Read More
With the stock market stubbornly refusing to settle down and... Read More
The World Bank claims that some two billion of the... Read More
On the 40 year journey through the turmoil of a... Read More
premium house cleaning Glenview ..All stock trading and investing methods must deal with the... Read More
(1) Stock Market is Tough Place to Make Any Money... Read More
The debate rages all over Eastern and Central Europe, in... Read More
Success in small cap & micro cap stock trading like... Read More
Because you don't feel too sure about which stock or... Read More
Maximizing a stock market investmentThere are several factors an investor... Read More
Are hedge funds a suitable investment for you? Hedge funds... Read More
I love roller coasters. The steeper the better. High and... Read More
You have a lock on your house. You have a... Read More
Mutual funds were moderately successful in creating a presence in... Read More
If you've ever flipped on the television to CNN Financial... Read More
When will the stock market stop going down and start... Read More
You remember the story about the frog that was put... Read More
In November of 2000 when the NASDAQ was trading at... Read More
Very few people, even professionals, have heard of the Dalbar... Read More
As GuruFocus updates the stock buys and sells of gurus,... Read More
This article describes the model of a natural relationship between... Read More
An insane person cannot evaluate an insane evaluation system.As you... Read More
Analyzing growth stocks is an important focus for any investor.... Read More
When we go to the circus we see a trapeze... Read More
You remember (they show it on TV every year) the... Read More
Congress recently passed another new law that is supposed to... Read More
The Winter Games for the Olympics are coming up soon... Read More
It is difficult to make money in a bull market,... Read More
I mean it when I say that. While plastic silverware... Read More
Stocks & Mutual Fund |