I’ve posted this blog post about a huge trading mistake because I received an email from Lim, who is in a dilemma.
He went long a particular stock and prices have been falling.
He thought since the price has fallen, it was cheaper and he should buy more.
So he averaged in a few more lots.
…he’s sitting on a paper loss of 35%.
So what should he do after his trading mistake?
Cut the loss, or hold onto the stock?
My answer is this:
Whether you’re a trader or investor, you have to know the point where you’re wrong and get out of your position.
Because if you don’t, you will always be at the mercy of the markets, which is the last thing you want.
If it’s me, I’ll cut the loss and take this as a valuable lesson.
It’s a bitter pill to swallow, but it’s the only way forward.
Now back to the markets…
…In this week’s market analysis, I walk you trade a few potential trading setups on Gold, GBP/NZD and Crude Oil.
Beware of This Trading Mistake
I hope you have enjoyed this week’s market analysis and you will be aware of this trading mistake. As always, comments are welcomed and encouraged. Cheers!
Do you want to learn a new trading strategy that allows you to profit in bull and bear markets?
In my FREE trading course (valued at $48), I will teach you this powerful trading strategy step by step, along with charts and examples.
You can download it here for FREE.