If your right hand causes you to sin, cut it off and throw it awaySaudara Matthew 5:30
Haih. I don’t want to look dy. I am filled with regret.
Remorse overflows from every crevice of my body like hot, burning lava.
Sorrow sublimates and seeps out of every pore.
But this is an experience all investors have to go through in their journey. It’s a lesson to file away and remember so you don’t repeat it.
Aside: You all don’t be surprised at my colorful descriptions hor. Limpeh England very powderful one. Pik pak gio when he wants to kek it out.
I am talking about selling a stock when it hasn’t reached its full potential and leaving an abundance of gains on the table.
Nabeh. I followed all the right trading signals and bought Hartalega at the bargain price of RM13.11 in my previous post. I held on to the stock with no intention to sell until it reached my target price of at least RM18.
However, in an impetuous flight of fancy I decided to sell it last Wednesday.
WITHOUT LOOKING AT WHAT THE RESISTANCE WAS
I decided to be a cool day trader and sell it at RM14.46 for a small profit and buy again when it retraces.
After all, Hartalega been going up and down between a certain range for a few days.
I made slightly more than 10% profit and queued immediately to buy at a lower price.
Except Hartalega never retraced below my sell price. The last closing price was RM17!
I left an additional 20% of profits on the table due to my impulsivity. I could have earned 30% instead of 10% had I kept to my trading plan.
Lesson learned: Always look at the resistance and ATR (average true range – the average of how much a stock moves in a day) to maximize your profits before selling. Selling based on a target profit percentage is not an optimal trading plan. I am learning as I go along.
Keep your eyes on your target price and don’t deviate from it. Meaning don’t lari from your pre-determined exit plan.
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