Hi GaBard!
The more I trade the more I realize that you are right when you say a long term investor will out perform any daytraders. Also I have concluded that when you daytrade, it is better to take only your 20-25% profit and get out as soon as you can. I bought several momentum stocks the past 2 weeks, each time they went up to 40% and more. Each time I didn't sale waiting for a little more, each time they sank.
I had plenty of time to get out and take my 25% profit or even BTSing them, did I do that? No I stayed on like a captain seeing in ship sink. Fortunately I didn't loose everything, in fact by Monday night I should be even in my money BUT I learned one of the best lesson you can ever learn when you daytrade "As soon as you can take your investment back with profit, take it,BTS it and get the hell out of it. Don't wait for that 5-10% more, that will destroy you."
I understand more this sentence now "When you play with fire be ready to get burned." It was my decision to invest in penny stock and I take full responsability for it, I knew the risk like anybody else. I realize also that I was greedy, strange that I never noticed so much that tendency before, for sure daytrading brings the best and the worst out of you. I had a great week because of that experience, life is wonderful it is just a matter of seeing it with the right perspective.
Just one more thing, a great man that I know and respect a lot told me once "When I was a kid we used to play cowboys and indians but because we weren't so many when we were so called "shot to death", we would wait on the ground, and after few seconds we would stand up and shout "New man! New man!" and the game would continue." This man told me "You can always do the same thing, just say "New man! New man!", learn from your mistakes and leave the weight of your "should, could" with your old understanding. You can always have a new beginning, but you have to believe in you.
To all my fellow investors, I wish you a great weekend.
The wisdom day of Shashidev |
