the key of losing money is not egg-stable# Stock
y*o
1 楼
At least for me,
When I keep losing money, I am cautious and very carefully search my picks.
But when I start earn money for a while, it is time for me to be over-
confident and willing to take more risk, just because you think it is too
easy to earn money in stock market. Then it is time you do lots of bad
operations and lose big money. Then the worse is coming when you lose a
large amount of money. You become red-eye, nervous and you are so eager to
earn you money back. More risk and more leverage, here comes the options and
margins. You can not make rational judgement at all at this time. Finally
you find out that you are totally doomed.
1. Be egg-stable every day. write down your principle and keep it no matter
how much you earn and how much you lose.
2. If you lose like 20% or earn 20% of your account for 1 week, take a rest.
You deserve a rest. You can not earn 20% every week and if you calm down
and be patient, you have lots of chances to win your loss back. Just do not
take more risk because you lose money.
3. know your stock. Different stocks have different styles. My fault on pphm
this time is treating trash stock with normal stock. This is the second
pharm stock I play with. ARNA is the first and I use put to hedge most time.
VVUS is the second but I am shorting the stock rather long it. Then here
comes pphm. I have the stop loss limit and do regular day trade or multi-day
trade. But all these do not work when it gap down 80%. I did not sell it on
Friday because I use stop loss order above my buying cost to earn more. For
most trading stock, like aci, bac, fslr. I will not sell a stock unless the
up momentary is changed. So I normally set a stop limit order below the
market price but above my cost. But this methodology seems not work on Pharm
stocks.
When I keep losing money, I am cautious and very carefully search my picks.
But when I start earn money for a while, it is time for me to be over-
confident and willing to take more risk, just because you think it is too
easy to earn money in stock market. Then it is time you do lots of bad
operations and lose big money. Then the worse is coming when you lose a
large amount of money. You become red-eye, nervous and you are so eager to
earn you money back. More risk and more leverage, here comes the options and
margins. You can not make rational judgement at all at this time. Finally
you find out that you are totally doomed.
1. Be egg-stable every day. write down your principle and keep it no matter
how much you earn and how much you lose.
2. If you lose like 20% or earn 20% of your account for 1 week, take a rest.
You deserve a rest. You can not earn 20% every week and if you calm down
and be patient, you have lots of chances to win your loss back. Just do not
take more risk because you lose money.
3. know your stock. Different stocks have different styles. My fault on pphm
this time is treating trash stock with normal stock. This is the second
pharm stock I play with. ARNA is the first and I use put to hedge most time.
VVUS is the second but I am shorting the stock rather long it. Then here
comes pphm. I have the stop loss limit and do regular day trade or multi-day
trade. But all these do not work when it gap down 80%. I did not sell it on
Friday because I use stop loss order above my buying cost to earn more. For
most trading stock, like aci, bac, fslr. I will not sell a stock unless the
up momentary is changed. So I normally set a stop limit order below the
market price but above my cost. But this methodology seems not work on Pharm
stocks.