What the market IS doing is more important than what it is GOING TO DO.
I have experienced that in stock market, it is safer to assume that the on-going trend is going to continue THAN assuming that it is going to reverse, till it actually reverses...............
Similarly, it is safer to assume that the trend has not started till it actually has. so-many times it has happened that u have taken a reverse position expecting a trend reversal only to discover that it hasn't.
Although u may be right that reversal may be round the corner but it may happen after some time and by that time ur losses may be substantial.
Besides, there are enough signals before the reversal starts.....................
Have mountains of patience before u jump. jump off the sinking ship like James Bond does....at the last second...and sometimes after 1-2 seconds....no harm in losing peanuts of profit in favour of jumping in the right time!
Even the stop loss becomes in-effective without mastering the art of picking the stock at the extreme and at the edge. Thus, to decide a correct stop-loss u must wait for the exact extreme signal of reversal.
And what better signal of reversal than reversal itself!
Remember...What the market IS doing is more important than what it is GOING TO DO!!!
No comments:
Post a Comment