I'm the guy that makes the stock drop as soon as I execute an order. If you can relate please keep reading.........   

 

 

Take a look below and it will be obvious that I know a little about losing. This was my biggest loss thus far. I'm not a fan of losing, but I am a fan of learning. I want to share with you what I learned in hopes that it may help you too (scroll down).

 

       A loss like this is easy to come by. You picked a trade that you knew was going to make a lot of money, maybe you were waiting and watching it go up, or you were in the chat room and everyone was posting their entry and exit with profits, or you received an alert and thought it would be a great idea to follow it. Whatever the reason you find out in the end that you're wrong, but if you're like me it's easier to lose money than to make it.

    When I am in a winning trade I get nervous and often get out too early, but when I am in a losing trade that hope of the rebound keeps me in it. I believe that sooner or later it's going to bounce back, and everything is going to be okay. We just don't want to let go of the chance that we could be wrong.  So how do we avoid such disasters?

    Be okay with being wrong even when you're right!! The reason it's so hard to cut losses quickly is because just like when we buy it and it goes down, when we cut our losses we usually come back to see the stock a dollar above our original entry. The way to combat this is to be okay with it. When I cut a loss early I am ok with finding out later that it recovered. My new motto is "I'd rather lose $50 and find out I was right (because the stock went back up), then to lose $5000 and find out I was wrong (the stock tanked)".

    Once I became okay with cutting my losses and being right that I should have stayed in, I have begun to win more than I lose. I go into a stock with a plan, and if that plan starts to go against me I get out. Even if the stock turns around and trends up. I would rather cut my loss and be right (that it was going to go up), than to watch my money disappear and be wrong because it didn't recover. If you found this helpful be sure to follow me. I'm going to start sharing more of what I learn.