Monday, June 23, 2008

Cut the Losers

Cut the losers. Let the winners ride. Never let a winning trade turn into a losing trade.

I have had to exit four trades this year as a result of winning trades turning against me. In FXI I was up 13.5% at one point, but bailed at my break-even point as it reversed direction. The same thing happened to me in DD, PCU, and QQQQ, shown in the charts below. All four stocks are currently trading below my sell price.




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