As stock traders, we have to always remember and keep in mind that trading common stocks are speculative and substantial risks are involved at any one time. We have to be willing to take many small losses to avoid the possibility of sustaining bigger losses and thus losing our entire stake.
Insurance premium
Many people i know are not willing to take losses as they are often stopped out before their stocks took off to greater highs. They are conditioned into thinking that taking losses would prevent them from making big bucks. However, the opposite is the truth. Consider taking small losses as your fire insurance premium against potential huge irreversible catastrophic losses. As the famous stock operator, Bernard Baruch always said:
Think about it, my friends.
Insurance premium
Many people i know are not willing to take losses as they are often stopped out before their stocks took off to greater highs. They are conditioned into thinking that taking losses would prevent them from making big bucks. However, the opposite is the truth. Consider taking small losses as your fire insurance premium against potential huge irreversible catastrophic losses. As the famous stock operator, Bernard Baruch always said:
"If a speculator is correct half of the time, he is hitting a good average. Even being right three or four times out of ten should yield a person a fortune if he has the sense to cut his losses quickly where he has been wrong."
Think about it, my friends.
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