there's a saying that as a trader / investor we should always ," plan our trade and trade our plan"
but the truth.. many of us fails or suffered a loss because we "don't plan our trade and if we plan our trade occasionnaly we don't do as our plan says"
that's the problem..
today , Thursday 23 April 2009
i have plan to buy BNBR at 68 and sell it if breaks 65..
firstly the stock moves at it lowest 64 and i should sell it if i strict into my plan..but the bad thing is that I DON'T SELL IT (believe me it's hard)
and then i began to smile watching that the stock rebound to around 70, i rather calm but still my hearts affraid because i don't do it as my plan says.. i tried to cheer up my self and convince my self that i do the right thing.
minutes pass through..
and BOMM!!!
the stock drops until 64 again, my heart is trembling and the WORST thing that once again i don't do as my plan say.. further more i revise my plan to sell if breaks 60 (i don't want to lose so i give more tolerance to risk)
and then..
the bad things happens..
the stock went down to 52 very fast... i'm panic so i quickly sell it at 54 on the way down to it lowest at 52
yeahh.. great I'm loss 20% in just a day..
the lesson that i want you all know is :
- always plan your trade and trade your plan
- control your emotion (don't let it ruin your plan)
- cut your losses short
- don't overconfindence, sometimes you can be wrong
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