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Never Fall In Love!
By David Chandler
Recently I watched my favorite football team lose a vital game.
I simply love this team. I became so emotional about it; I
thought ˇ°ˇthis isn't good for my healthˇ±. Can you believe that,
but that's how we get when we are passionate. I simply
couldn't believe (I didn't want to believe) they could lose.
However, as a committed fan, I was going all the way with
them. If they were going down, I was going down with them.
After all, you don't give up on your team simply because they
don't win every game. On this occasion, I was so wound up,
willing them to win, knowing all along they had blown their
chances.
I really should have walked away from the TV. However, I
stayed for the pain. Oh, the exquisite agony. At the end, my
shoulders and head were down, I felt like I'd run a marathon
and deeply felt the loss for the team and myself. Was there
life after this game?
I should have been saying to myself ˇ°ˇ they've done well
considering they're a young team, they've done better than
expected, so save yourself the heartache and face the
factˇthis season is not theirsˇemotionally detach yourself.ˇ±
As I was lying on the settee, absolutely exhausted, analysing
why I'd put myself through it, my mind went back to my early
days of trading. We all go through this and hopefully only in
our very early days - when we learn a few painful lessons. For
some, it's enough to put them off trading forever.
We buy a stock, believing the price will go to a higher level.
We know it will rise, because it's a blue chip and the
indicators all line up. There's no chance this will turn against
us. It's a stock we love because we've followed it for some
time and it's a household name - it's been a great performer
for years. Of course, we've got our mental stop loss sorted
out before we go into the trade.
However, it does turn against us. Because we love the stock
we see our stop loss taken out and what do we doˇ Nothing!
We love this stock and it will definitely bounce back. But it
doesn't and like a sports fan, you stick with your ˇ°teamˇ± and
with every decrease in price, you feel that pain and you rapidly
go down too - you too are a loser, not only in the sense that
you've gone against the rules, but also you've lost your money.
Just like your favorite team, you can't win every time. So, to
protect yourself against losing, get out when your stop loss
tells you - don't let your love for a stock paralyse you. In this
way, you'll sustain a small loss, but have enough money left to
go in on a winning trade.
So, never attach emotion to a trade - treat them all the same
and trade your strategy. And always have a stop loss in
place. Don't rely on mental stops as love can make you do
crazy things!
NEVER FALL IN LOVE with a stock.
The above comments are offered for educational purposes
only. We are not providing you with financial advice. We are
simply sharing with you what has and hasn't worked for us
personally. If you wish to trade or invest in the stock market
you should obtain advice from a registered licensed advisor.
About the Author
David Chandler
http://www.stockmarketgenie.com
For your FREE Stock Market Trading Mini Course:
"What The Wall Street Hot Shots Won't Tell You!" go to: http://www.stockmarketgenie.com
Article Source: http://www.simplysearch4it.com/article/6358.html
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