Monday, February 8, 2010

4 options when your stock is going down...

Option 1

you trigger stop loss though you had enough buffer funds to safely hold on to losing position to any depth

Option 2

you trigger stop loss knowing that u didn't have enough buffer funds

Option 3

you don't trigger stop loss and have enough buffer funds to safely hold on to losing position to any depth

Option 4

you don't trigger stop loss despite knowing very well that u don't have enough buffer funds to hold on to losing position for long
..

...

If you opt for the first option you are professional day trader who doesn't believe in wasting time by getting stuck in positions, though you can very well afford to.

If you opt for the second option, you are risk taking wise trader who will make money despite your back against the wall.

If you opt for the third option, you are a casual amateur trader who is complacent because of comfortable fund position.

If you opt for the forth position, you are a gambler but not "the great gambler". You might not be around for long.

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