Do you have one of those huge investment winners - a stock that went from $ 2.00 to $ 80.00? Or any other songs you want me to give you a huge percent profit?
Did you take the profit or did you watch the equity drop back down to what you paid for? I hope you sold and kept the money. That's what it's all about. As often as I've seen clients make big gains a broker and then think they were about knowing the market and give them what they had done. Return within a short period
If an owner brokerage company I seasoned brokers do the healthy thing. One of my men made $ 150,000 in a short time. I called to congratulate his performance and he suggested a break from trading for a while. He said, "No, Al, I know what I'm doing." The very next month he lost $ 155,000. What happened?
Listen carefully as I am going to one of the great truisms not found in commercial training manuals tell. If you do any trading strategy or in stocks, mutual funds, real estate, currency, whatever, this is true. Print it out, frame it and put it on your office wall.
"Making a lot of money is just as annoying to your mind when losing a lot of money."
A big score destabilizes thinking. Many people want to do it again and again, so they immediately dive back into their investments with their winning money and make larger bets. It is almost without exception that they are losers and give their profits back.
I called for taking time out after a big win for many years. It takes time to regain your head on straight. As a former floor trader I would have during the year when I was a good "hit." About 6 or 8 times I would immediately call to ask where I could go for a week. My travel agent I knew I must leave because my investment would be overshadowed by the success.
Too many of the big winners seem to change their basic trading plan because they now had a large amount of trade that makes them different from their successful pattern. She then became losers. Because of their success changed their thinking and they were unaware of what had happened. The trader has to go and let his emotions down.
A disturbing event, even a positive, can change your thinking. If you want to keep your investment returns you need to keep your emotions. Control
Best selling all of Thomas' book, "If it does not go up, do not buy!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. Copyright 2005...
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