Practicing What I Preach

by Olivier on October 6, 2009

Yesterday I wrote about the importance of the need to commit to not being right all the time. As a matter of fact I’ve been writing about getting rid of one’s losers and keeping one’s winners for ages. A few days ago I said AOT.V – Ascot Resources was my weakest stock and that it would be the one I would sell first.

That’s what I did . Today gold moved up significantly. Almost every gold related stock was up. AOT.V was down. The decision to sell was a very easy one. The chart is completely messed up. The stock is not acting right. That’s not the way a strong stock is supposed to trade. I could be wrong and might end up having sold the lows. I couldn’t care less.

But that’s not the point. If you let the fear of selling out at the low influence your decision to trade in a disciplined way you will end up holding on to losers. You know the rest of the story. Huge losses. Loss of precious financial and mental capital. Not trading in the ‘zone’. No flow state of mind. Not trading at peak performance.

To make a long story short. I cut my losses. I sold my biggest loser. Now I can move on and get exposure to other opportunities.

There’s never a shortage of good looking charts and great opportunities in the markets.

Have a great evening!

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