Oops…
CVS raced higher almost immediately after I entered, and I was down roughly 40% before I could even blink.
It wasn’t a good day. And no, this isn’t a story of how the markets magically reversed themselves and delivered for me against all odds. I lost money on this trade.
But here’s the good news: I didn’t lose much money.
Because I also followed my other core advice of never risking more than you’re willing to lose.
There really isn’t anything more important for traders, especially new traders in my opinion.
As Jeffry advised yesterday in our Q&A session, when you’re new, you’re probably not going to be very resilient towards losses. But that’s a reflex you HAVE to be able to strengthen.
A lot of times, we’ll get asked in our webinars how much you stand to lose with a system, and I understand why. It’s a big question.
But I actually like the systems where you stand to lose 100% if you’re wrong. That way, I can go into the whole trade with a crystal clear picture of what’s on the line. And if I don’t like my max loss, I either don’t take the trade or trade fewer contracts.
On CVS, I wasn’t risking enough to worry about a 40% loss. So I stayed in the trade hoping things might reverse. They did over the course of Tuesday but then jumped even higher on Wednesday morning, when I closed it out for about a 60% loss.
Oh well. At the end of the day that ended up being like $45. So I think I’ll survive.
But if I hadn’t known my risk going into things, I might have been in trouble.
Hopefully you’ve had better luck than me this week, but if not, just remember: there’s always another trade.
To your prosperity,
Stephen Ground
Editor-in-Chief, ProsperityPub
P.S.: One of the tools I love to use to find trades is Lance Ippolito’s scanner. And when I trade with it, I usually have a lot more luck than I did flying solo this week :)
If you want to know more about it, Jack and Lance got together to talk through some of his top scanner picks today. See what they found here
| |
|
|
