My Favourite Subject

Uncle

Established member
671 2
Following is an extract from Alpesh B Patel's column in the Financial Times 03/03

"Selling Improves Performance.

A net trader will expend more mental energy on a losing position than a profitable one (you get stress from sitting on a £10,000 lost than a £10,000 gain)

It is better to sell, take a loss and spend time looking for better opportunities than to keep fretting about a stock thats drops little by little. Its the trading equivalent of the death of thousand cuts each days brings another tiny loss, not enough to trigger a sale, but enough to bleed your performance dry."

I trust by now most of our members understand this.

Best wishes

John
 

shelman

1
439 1
Yep agree with that entirely. We had a similar thread months ago but it's worth iterating for any newcomers to trading.
The first time one realises a loss is distressing but the grief is soon overcome and then a sense of triumph when the dog of a stock falls further.
The confidence this brings is invaluable for future successful trading.
You must recognise and admit your mistakes...it works.
Steve