How To Trade Stocks Without Emotions(16)

Rules and mistakes:


8b) If a good stock from a good sector hits new high but unable to breakout then the market might be in a corrective mood.

So far I have experienced three such times. PCLN in Aug hit new high to 94.

I bought it then PCLN went to 60 due to market correction.

When market came back it broke out and hit 160 but I sold it for a miniscule profit. When the stock comes back vigorously simply keep the stock.

The same happened with SUNW and I took a profit of $250 when the stock came back.

Now in Oct. history repeated itself with JBL.

Bought at $56.

This time however I sold at 49 and JBL is now at 62.

After loosing money only I am realizing what has been happening.

During such time take the money off or go short.

As for shorting do it only when market is weak and the sector is out of favor.

During such time it is good enough to be just out of market.



By Jay Deb