I noticed a peculiar habit of one of my friends.
Recently I went to a Govt official's house with him.
Our host had a fierce dog as pet.
My friend, on seeing the hound behind the closed gate stopped, took out an eclair and threw at the animal.
"Do you think dogs eat eclairs?" I asked him.
"I know he may not like eclair. But I am just testing the dog's mood" my friend replied.
"I just want to know whether the dog is in excited mood. whether he is in the mood to attack or not."
"I want to test him on the eclair before offering my leg"
I was amused to hear all this.
Why don't we enter a stock in risky situations like these in two steps.
Step 1: Offer an eclair!
Step 2: Offer our leg!!
I am pained to see my friends straight-away offering not just their leg but their neck to risky trade hounds.
By entering a swing or positional trade in steps, you not only are much safer but also if things go wrong in second or third step, you already have some profit from the first step to cover your loss.
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