Hi Webb,
Boy can I relate to you. I have been in your situation (previous situation) many times before, and it is then that I have realized the true strength of TA.
TA is the killer of all rationalizations.
Every bad stock (i.e. stock not going up), has a million excuses (rationalizations) as to why it is acting the way it is. TA cuts right through all of them and tells you in clear cut terms.....
HOLD OR SELL!!!!!
Then it is only up to us to follow the TA.
Although certain threads like this one offer a great deal of important info, most threads on public boards are nothing more than cheering sections for stocks. Yet they can teach us more that you can imagine about following our TA rules.
I seriously suggest that every true TA student pull out charts on stocks like OO, USDL, MRII, PRZM, MGX, etc.......
Find the day when these stocks peaked, and then follow the posts from that day on, on public message boards like Yahoo and SI.
What you will see is one of the most frightening displays of denial and rationalization you could ever imagine. These people are literally like "deers caught in the headlights." They have a million reasons for why their prized stock is sinking, and how it "has to come back."
These people will sit in a stock for months and years while they have 20%, 40%, 60%, sometimes up to 95% drawdowns in their equity. And all of it could have been prevented if they followed simple TA and money management rules.
As I said, I can relate, as I have made the same mistakes, and I too have gotten "off the hook" on a stock that came back and let me get out even. But if you play that way, you will eventually get hit big, and then you won't have the capital to ride those winners.
BCL |
