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Don’t Seek Revenge On A Stock

Throughout the multiple decades that I have been in this business I have learned many things about trading. Simply put, the key to successful trading is to not make the same mistakes from the past. One mistake that many new traders make is trying to get revenge on a stock that they have lost money in. This is something that I’m guilty of myself early in my trading career. Let’s take a deeper look at this and why you need to be aware of it…

There were times when I would lose on a trade and then try to get even with the stock, as if it was a person that betrayed me. I remember getting angry at the stock and taking the loss personally. This was one of the worst mistakes that anyone can make. You see, when you seek revenge on a stock you can not think clearly. It becomes very difficult to even read the chart correctly and make a rational decision. This is a common flaw that occurs every single trading day. I hear novice traders talking about this all the time.

Remember, we cannot beat up or punish a stock. As a trader, all we can do is try to be on the correct side of the money flow. We are either long (buy side) or short (sell side) an equity depending on where we believe the stock is going. Do not take a loss personally. After all, the CEO of the company does not even know you are trading the shares of the stock, there is nothing personal about the markets. Not to mention, it is always easier to not face your mistakes head on while placing the blame elsewhere. But when you remove your ego and evaluate your mistakes with a clear mind, at that point you will grow and progress in whatever it is you want to achieve in life. Not to mention your happiness in general will increase as you learn to find positives in your mistakes.

The remedy for this stock market revenge problem is simply to follow the charts. Learn to read and understand the charts. This does not mean that you will never lose on a trade again, but it will help you put the odds in your favor. Trading is about following the money flow, not fighting the market. Stick with the trend as long as it tells you to. Then when the trend changes so can you. Until then, don’t try to seek revenge on a stock that you may have lost money in, that is a sure way to accumulate more losing trades.

Bullseye Trading has logged in 18 consecutive winning trades in a row without a loser! This performance is verified and documented. Check out EVERY trade and get the next right now, click here.