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Changing your mind after buying/selling a stock.

Many times I make trades into stocks that I don’t have complete understanding of to chase an opportunity.  Taking  a stab with an educated perspective looking for a stock to move favorable higher or lower.   After putting on the position  I continue to further investigate the trade.  Sometimes I like what I find and other times I realize I missed part of the story.  That does not mean my trade won’t work; but, does mean I should adjust my exit  strategy to meet what reality is offering me or may offer me.  Adjusting your trades to what is actually going on in the market has been very helpful.   Don’t be afraid to change your mind.  Be flexible and change your mind as your understanding of reality changes.

    Most traders only deal with a list of stocks they fully understand to avoid this problem.  Many analysts only follow one stock or a few stocks so they can be up to date on all the developments in a stock and the surrounding industry. 

 Understanding of ones self will always be an important part of trading successfully.  I personally live to find the next big idea or trend in any exciting story.  I get too emotional and quick to forget the past.  To deal with this I continually work on my trades.  Go over my rules for trading.  Try hard to resist being overly aggressive. I created this Blog to help myself work on my trading ability.   I had to turn off CNBC during trading hours because of the typically manipulation you find in any for profit enterprise.   I had resisted the idea of not watching CNBC from the first time I heard about being more successful with the t.v off than on.   My experience watching, and with out lead me to believe for the time being I am better off with out it.  I changed my mind on my short position on Google  or at least realized most of the profit in the trade may be gone.   I was able to exit this morning with a profit.   GOOG will probably stagnate here and the move higher over time.  

entertainment purposes only

February 4, 2008 - Posted by | Stock investing links, ideas, and opinions. | , , , , , , , , ,

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