I have been a student of trading/investing for over 30 years.
One of the most important lessons I have learned over the years is that the ability to sell effectively is the cornerstone of success. Effective selling limits losses and can maximize gains. The only other alternative is to never sell which will expose one to catastrophic losses and just leave you with “hope” that things will turn out well. “Hope” is not a strategy.
Don’t get me wrong. Effective selling isn’t easy. One never likes to take a loss, even a small one. When selling at a profit we are always worried that we will miss additional gains.
However, it is sure fun to ring the cash register and harvest gains…
iShares Mexico Index Fund (EWW) daily
Price is up almost 22% from our recommendation on January 17th. Price has failed to clear resistance and will likely fade from current levels.
Sell it and harvest the gains. We can always buy it again if it clears resistance. Ka-ching.
Post Holdings Inc (POST) daily
Price is up almost 15% from our recommendation on November 22, 2016. Price has failed to clear resistance. Sell it and ring the cash register.
Hold all other open positions.
Trade Smart,
Don