Thursday, June 21, 2012

Always Remember to Take Profits

Today was a good reminder to always take profits. Even when you are up a modest profit you never know what’s around the corner.  There’s also the psychological affect that knowing you made a profitable trade has on you.  When you see a lot of green on your balance sheet it looks better to you psychologically then looking at a bunch of red or even worse, nothing on the balance sheet.  This whole game is psychological.  The market responds to people’s emotions around any given stock and what they think might happen to the company.  The key is to know yourself and be able to talk yourself up when there are down days and talk yourself back when there are good days.  Having a lot of green on the balance sheet helps you to have confidence in yourself as a trader and know that you can be successful.  Nothing breeds success like success.

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