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Don’t be too greedy to get even the last penny. Keep a small profit margin and exit.

+5
samcader
sbw
Roboticfx
ahamed112
Asoka Samarakone
9 posters

Go down  Message [Page 1 of 1]

Asoka Samarakone


Expert
Expert

Don’t be too greedy to get even the last penny.
Keep a small profit margin and exit.

Stock market for beginners
If you can catch just two index points on an average day, you can make a comfortable living as a day Trader. Make several trades each day and have each position closed by the end of the market day. This practice is known as stock market day trading.
Not every trade you make will be a winning trade, so you must make sure that you make more money from your winning trades than you lose with your losing trades. So find what works best for you and make a habit of doing your homework.
“Look at market fluctuations as your friend rather than your enemy;
No market will go straight up it needs correction.
Be with the market you will feel when to exit. Don’t be too greedy to get even the last penny.
Keep a small profit margin and exit.
Real learning occurs through repetition, making mistakes, identifying them and devising strategies to improve in future. One of the secrets to investing is learning your own trading method(s) that work for you.
Invest in more than one or two stocks so that lose in one stock can recover from the profit in another one. Don’t buy all the stock at one time, buy a small amount at first and see what happens. Practice with using small amounts. That way you will be able to see how to play the stock market without losing If it goes down a little, buy some more.
The stock market can be a great place to make money; it can also be a great place to lose money. As we all know that any investment is not free from risk. If you really want to excel in any field, you have to practice. You don't just read about something and expect to be good; you have to do it too. If you love what you are doing, you are going to be a lot more successful. It's those investors who really do their homework that succeed.

ahamed112


Senior Equity Analytic
Senior Equity Analytic

Good one

ahamed112


Senior Equity Analytic
Senior Equity Analytic

Good one

Roboticfx

Roboticfx
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

+rep

sbw


Equity Analytic
Equity Analytic

good lesson. thank you

samcader


Manager - Equity Analytics
Manager - Equity Analytics

Thanks good advice

Antonym

Antonym
Vice President - Equity Analytics
Vice President - Equity Analytics

Asoka Samarakone wrote:Don’t be too greedy to get even the last penny.
Keep a small profit margin and exit.
Counterpoint: The problem for most of us is that we are too patient with our losses and too impatient with our gains. On the contrary, the right thing to do is sell off the losers quickly and let the winners run.

Eugene Groysman has an 11-year track record, showing an annualized return of 18.4% a year while the S&P 500 returned less than 8.9% a year during the same period. Over this period, he has invested in a total of 215 stocks at one time or another and has made money on just 44% of those stocks.

Q: How does an investor who makes money on only 44% of the stocks he picks generate a great return?
A: With an exceptional trading discipline. Groysman does this by cutting off the losers quickly while  letting the winners run. Of the 121 stocks on which Eugene has lost money, his average loss was just $9,641. However, the average gain on Eugene’s 94 winning stocks was $79,174. His average gain to loss ratio is 8.21, which means that  on average Eugene makes 721% more when he is right about a stock than he loses when he is wrong. So even though only about 44% of his stock picks make money, the gains he makes on the winning stocks far exceed the losses that occur on the losing stocks.

To have a gain/loss ratio like that, you have to be good at cutting your losers off while the losses are small, while at the same time holding many of the winners long enough for them to turn into doubles and triples.


http://www.forbes.com/sites/kenkam/2014/05/30/finding-the-next-warren-buffett-eugene-groysman/

malanp


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics


People who dont have holding power ie. Swing traders and traders buy on credit, should take the profit immediatly.

Investors should hold longer period and wait for the peak.

Bulk of the profit comes during holding period. premature exit will give only a fraction of the profit

raezor


Equity Analytic
Equity Analytic

Thanks for the advice. Rep +

Sarabulathwita

Sarabulathwita
Vice President - Equity Analytics
Vice President - Equity Analytics

Good but

Mamanam handata yanakam innawa dennema naa Very Happy Very Happy Very Happy Very Happy Very Happy Very Happy

That is my style


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