The only loyalty when you trade for yourself, is trading for your personal account.
Take a look at Unites States Steel (X). It has gone from 31 to 7 this year.
If you bought it at 20, was it your job to be loyal and stay in it on the way down? No.
What if your buddy was in the steel business and told you steel was going to make a comeback? Did you owe it to your buddy to stay in United States Steel? No!
When a trade starts to go against you, you should not have the courage to stay in it. You should fear that it can get a lot worse and do everything you can to protect yourself.
Look at Wynn Resorts (WYNN), it was at 162 this year. If you bought it at 150 and it went to 140, should you have had the courage to ‘stay with’ the trade?
I would hope not, it went down to 63! If you got afraid once you were quickly proven wrong then you would have saved yourself big time.
When it comes to taking profits, should you be humble? Are you supposed to say, “Thank you, that’s enough and I’ll be on my way?”
When a trade proves you right, that is when you want to stay involved and make sure you really get paid. When NFLX went from 80 to 100, if you got out because you wanted to avoid being greedy, then you missed out on another 30% move.
Remember: good stocks will keep you in in them.
The beauty of trading for yourself is that there are no politics.
If you trade well, you get paid. There are no deductions because you failed to kiss up to the boss.
You want more money? Simple, just trade more – and trade better. There’s also no etiquette.
If it’s working for you, then keep it; and if it’s not working for you, drop it like a bad habit.
You owe it to yourself as a trader.
If you want to learn how to trade for yourself, the right way, from the ground up, then start here.
Now that you know the truth, and are starting to get the edge, you need to start pulling profits from the market.
All the Best,
P.S. When a friend or family member ask me how to get started in the market (and they do all of the time), I always start them with this.
Adam Mesh is CEO and Founder of The Adam Mesh Trading Group. For the past 18 years he has coached thousands of students to all levels of success in trading. He is also creator of the revolutionary Advance Beginner’s Guide