Many times we encounter investors that come asking
,(Auntie) how is my stocks? Where is the market heading? Do you think will there be a next QE coming? Interest rate hike? What do you about Genting SP, Noble Group? Cosco? My Cosco Jialat leh, buy at $2.00 one.. etc..
When you need to know what is happening next, you are actually lacking of a Strategy of entering and exiting. You need to find a Strategy that fits you!
Auntie: Cannot Cut loss la, lose a lot money leh if i cut loss now!
To cut loss or not? Even fundamentalist do have cut loss, you have to understand that no system work 100%. Losing is part of the Game. To win is game, is just to have Big Win and Small Loss. But most people in the market tend to have Big losses and Small gain. This is natural human behavior, market is design to beat you in this way. You have to decide your Risk management strategy. Most successful trader don't risk more than 1% of their portfolio in each trade, this manage the risk of Ruin, black swan, fat tail event that will blow up your account!
Auntie: Aiyo! This Cosco is "My FRIEND" give one!
RESPONSIBILITY!!
Always remember this! Nobody cares about your money more than yourself, you have to justify using your strategy whether this trade fits you. What I learn from great traders is, they dont follow other people. If you want to become better, you have to try catching the fish by yourself
Auntie: So how now? Cut or Dont Cut?
No Comment. =.=||||
Do you have what it get to be a Profitable Trader?
•Weapon?
2.
CFD account -
Trade STI index, Shorting and Leverage Power
3.Stop limit order
4.Trading System to Enter and Exit
5.Cut loss, let profit Run. Add position to winners
6.Backtesting to build confidence
7.Money management Template(Keeping records)
8.Mentor groups
9.Stock Scanner
•Defenses
1.Trading Plan
2.Perfect Execution (Entry and exit as planned)
3.Money management, Risk per trade, Position Size
4.Patience, wait, don’t overtrade
5.Emotional Control
6.Stock watchlist (Monitor your stocks daily)
7.Plan B(What to do if
market suddenly Crash?)
Feel free to contact us if you have any enquiries.
Learn How to Short Stock and Index here