Tuesday, 3 February 2015

The Importance of Discipline

The importance of discipline in share trading cannot be overstressed. That is because in most cases, when people are making money, greed makes them wait for more, and so they don’t book profits. When prices fall, fear makes them sell fast. These situations can be avoided if they know when to book profit/loss. But we can limit our loss by following our stop loss.

The Importance of Selling

Buying at the right price is vital. The ultimate return one will gain on any investment is first determined by the buy price. In a way, one can argue that a profit or loss is made upon buying; you just don’t know it until you sell. And, while this theory is deeply rooted in sound fundamental principles of investing, selling is also a vital link.Indeed, while buying at the right price may ultimately determine the profit gained, selling at the right price guarantees the actual profit, if any.
Thus, if you can’t sell at the appropriate time, the benefits of proper buying disappear.

Words of Wisdom

Always stick to stop loss. Never go against the market trend and never mix your trading portfolio with your investment portfolio. See an opportunity in every market move.

(excerpt from an article on internet)

No comments:

Post a Comment