In the market you’re going to be wrong — a lot.
And if you can’t set (and take) stop-losses you are going to get CRUSHED.
I used to be the guy who never took stops.
It’ll come back. I have faith in my pick. This is a long term trade.
That’s what I used to tell myself.
Well, faith’s got nothing to do with it. And after you’ve refused to close out at a stop-loss level and watched your position plummet 50, 60, 90% you learn, it doesn’t always come back!
Take this weeks pick $MEMS.
1 week. -50%.
But, there was plenty of time to close out for the standard -10% stop. And you would have thanked your lucky stars you did that.
Here’s the chart:
Good luck out there!