Stock Market Artist. Software Developer. Stocks Doesn't Care About Your Feelings.
Joined December 2011
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There is a common misconception among investors and traders that says:
"You can't go broke taking a profit."
In the book How I Made $2,000,000 in the Stock Market, the author Nicolas Darvas describes how, at the beginning of his journey, he would take profits very quickly.
1/6
Of course, identifying when to sell your winners is a discipline in itself, but the point is to trust your method and act according to what the market shows — not according to emotions or the fear of losing what you’ve already gained.
5/6
If I had to highlight the 5 most important traits for achieving exceptional returns as a trader, these are the points I would emphasize:
1.Avoid "averaging down" when you're at a loss – The bad habit most traders have is "averaging down" on a stock when it's in the red.
in an attempt to justify breaking the rules you set for yourself. Stay focused on the method that has worked for you and brought you to where you are now.
5. Minimize risk – Your main tool is your capital. Guard it well.
If you lose your capital, you're out of the game.