Battling My Fear of Heights
February 21st, 2006 by BWV
Like most folks, I appreciate a bargain.
I regularly buy pullbacks in strong stocks. On the flipside, I love nothing more than selling a stock I bought at a low-risk entry point into a 3-day 15% straight up rally.
But one of my personal worst trading habits is to close out a winning trade with just a small gain.. early in the move.. usually with intentions to reload the shares at a slightly better price. That can work later in a move, but usually not when the stock is just leaving the launchpad.
And even if I want to trade around some of a stock’s natural volatility before it’s launched, I’ve gotta do it with only a portion of the shares.
After I sold it at 31.50 last week, leaving 8% on the table, GOL has now traded sideways for 2 days (while the market sold off).. so this time it “waited” for me. Typically I don’t get that lucky.
What trader doesn’t fight that urge? Keep catching those good trades and worst case you are booking regular gains (could be worse)!
you’re right, having some profits to protect in the first place is a good problem to have. i’ve re-bought higher on numerous occasions, and this GOL looks like it’ll be another one.
i guess holding for more than just a few days simply isn’t in my trading personality right now.
i don’t want to force anything, but i’d really like to work on that.
ps.
thanks for commenting, bandit!