Ever Felt the Pain of Selling Out Too Soon? 

The following are trades which most traders (including myself) hate to look back on but we must to learn from.

Imagine when you’ve completely exited something at a good profit then finding out later that it continues to go higher and you have left of money on the table.

However, this is hindsight talking because it could have easily gone the other way and hence rather than feel pain, you celebrate how brilliant you (or I ) were exiting at the exact top. This is a fantasy most traders always dream of. Buying at the low and selling at the precise high. It can happen, and it has happened to me on very rare occasions but it is nothing more than pure luck.

These type of trades teaches me a valuable lesson in that I must be content with what I have been able to achieve (decent profit) and be extremely happy no matter what the outcome is (even if it was a loss), that I have stuck to my highly researched pre-planned systems of entry and exit based on the high probability of up coming reversal (just don’t know exactly when).

ALB Trade Completion - 19.2.15

Trade Exit – ALB, Albemarle Corp

ALB, Albemarle Corp Stock Exit @ $54.58 on 19 Feb 2015 (Blue Shade).

Stock Original entry @ $49.75 on 5 Feb 2015 (Green Shade).

Total Return on Investment (ROI) of +9.71% and +253.22% annualised.

Duration: 14 days.

Reason for exit; 
Stock demand exceeding normal levels in the short term and hence a high probability of price reversal over the coming days.
Company is of long term fundamental investment quality but well overvalued and hence was only a short term trade which has been completed.

GGG Trade Completion - 19.2.15

Trade Exit – GGG, Graco

GGG, Graco Stock Exit @ $75.73 on 19 Feb 2015 (Blue Shade).

Stock Original entry @ $70.70 on 3 Feb 2015 (Green Shade).

Total Return on Investment (ROI) of +7.12% and +162.43% annualised.

Duration: 16 days.

Reason for exit; 
Stock demand exceeding normal levels in the short term and hence a high probability of price reversal over the coming days.
Company is of long term fundamental investment quality but well overvalued and hence was only a short term trade which has been completed.

 

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