This is a trade completed during March 2015 ago yet it provides an invaluable lesson on greed. From short term feeling of regret to ultimate feeling of conviction.
Several days after the exit due to falling stock volume demand, the stock powered ahead, rising almost 5% in a day when it barely moved for a whole month (total profit was a paltry 1% over 25 days) when I held.
That feeling of short term disbelief always challenges you, which is why it’s best to always look away after you have exited, knowing you have followed your well-researched system precisely and not deviating.
It then takes almost a month to show how your exit conviction was proved ultimately right (yellow highlight). The stock tanked falling over -30% overnight due to ‘unexpected’ operating losses.
I hope this chart shows how trading success is as much as locking in profits when they come (no matter how small as long as you follow your system), as much as avoiding disasters like these by not letting greed get to the better of you and overstaying your welcome thinking you always got to make a big profit whenever you enter.
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