Short-term gain is long-term pain
Short-term pain is long-term gain
Pain is very useful. No pain, no gain; so goes the saying. Pain flags us that something is wrong. When we are physically or mentally hurt we feel the pain. Physical pain and mental pain are quite different from each other. The latter is much more difficult to heal than the former. Anyone with a broken romance will feel the mental pain.
When you take a small profit, you feel elated. As the stock which you sold goes up and up, your short-term gain becomes a long-term pain. On the contrary, if you cut your losses quickly, and the share price comes down and down, your short-term pain becomes your long-term gain.
A trend in motion is likely to continue in the same direction. This is important. You will do well to commit it to memory. Let your profits run. Never kill the golden goose when you have one. People say, “don’t be greedy”. What’s the use of making pennies? You’ll never grow rich making pennies. Think big and plan big and someday you will be rich.
Money for value you must insist. Invest wisely.
Good luck and all the best.
2 comments:
how do u know it has peaked? sometime prices starts to retreat but u r still holding... end of day back to square one... how? :)
nice blog..!
In an uptrend, you will have higher highs and higher lows. When this is no longer the case, a peak is formed. As a trader you must be able to take a small loss when the situation no longer works in your favour. If you can't take a loss, don't be a trader.The first loss is the best loss.
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