Bearing small losses is a good thing and means you are trading well
Yes, I do take losses! Lots of them, but small ones only. But we do need to take them, and understand why, it then helps you to learn to trade properly in this somewhat imperfect world of trading.
Losses are a part of doing business. A trading loss should put you one step closer to success. FAMOUS FAILURES
The big benefit of locking in your loss, yes there is one, is you turn neutral, you are unexposed, and not at risk. You clear you head, discard the baggage of a loss and are fresh and ready to take new prospects on.
STOCKRADAR’S TRADING CENTRE
The Trading Centre is almost like a blank canvas right now (May 2022) with only 20% of Stock Picks (read qualified uptrends) as we endure this correction, so we will have a swathe (80%) of potential opportunities when the market turns up.
But along the way we need to get used to the fact that stocks don’t go one way meaning we have to factor in the inevitability of regular market corrections as we are now. Why? Because we don’t know when they will happen, but we know they do – fact. As uncertainty has prevailed the smart thing is to keep your risk controlled.
Portfolio results consider all markets. We have to because we don’t know when corrections are going to happen or even when they are happening. Scary. So, we know the facts. If you trade stocks this will happen:
A 10 % fall every 2 years (we’ve just had one of those)
A 20%+ fall every 4 years
A 30%+ fall every 10 years
So, build this into your expectations and your trade plan because you need to. Do you know what you’re going to do if the market/stock drops 10%, 20%+ or 30%+, Because you need to know that as well as these corrections are the norm, and we are going through one right now. It is important to be in control of what you do, or you will flounder. Don’t forget, the majority of the time the market is rising. Despite the setbacks a good strategy will still generate good returns.
Control: If the market or stock drops 10%, 20% or 50% do you know what you’ll do?
WHAT DOES THE STOCK PICK COUNT TELL US?
Has dropped significantly as it did in 2007 post an unusually strong market surge. Are we getting complacent? The recent rally mirrors the 2003-2007 rally. After such a market rise coupled with the drop in the Stock Pick Count we should at least be being cautious.
Stockradar’s Weekly YouTube update on ASX stocks, ASX/200, Dow Jones, Nasdaq and the Commodities complex. Stockradar’s Trading Centre unites the unique features of the Trend Intensity Indicator to quantify methodically managed and monitored trend and breakout entries, risk limited exits, stop settings to keep you safe, and all the information you need to make smarter trading decisions. Stock Shots: APA CGF TPW DMP ORG WHC MTS and ORG.
Stockradar’s Weekly YouTube flash update on ASX stocks, ASX/200, Dow Jones, Nasdaq and the Commodities complex. Stockradar’s Trend Intensity Indicator combines and weights four sentiment measures that generates an invaluable benchmark and highlights only those stocks with compelling trending qualities. Stock Shots: BHP CSR EDV APA MIN JHX and WOR
Stockradar’s Weekly YouTube flash update on ASX stocks, ASX/200, Dow Jones, Nasdaq and the Commodities complex. Understanding the Soul of price Analysis. The Price Trend holds the key and opens the doors to an array of powerful augmenting tools and indicators in the chamber of many valuable behavioural analysis methods and techniques. Price however remains the rock that underpins these methods. Stock Shots: BHP TCL ELD VEA ALL FPH CSL ILU MCR and COL
Stockradar’s Weekly YouTube flash update on ASX stocks, ASX/200, Dow Jones, Nasdaq and the Commodities complex. Momentum thrusts are our bread and butter. When combined with a disciplined risk management process it becomes a potent force. Stock Shots: NCM MTS APA MCR ZIM and COL
Stockradar’s Weekly YouTube update on ASX stocks, ASX/200, Dow Jones, and commodities. The simple moving average plays a key role in calculating our trend assessment tool the Trend Intensity Indicator. Today, in our Trading Tactics segment I show a simple, easy, and reliable method of using moving averages. Reviews: BHP CBA ORG NAB S32 CPU WOR and COL.