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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Sun Tzu who wrote (83372)	1/5/2024 4:39:23 PM
From: Sun Tzu	Respond to of 97611

This is where I sold EDIT. Did I catch the absolute top, no. I actually bounced a bit higher after going a fair bit lower. And at that time, the key question you ask yourself is if it was a mistake and you should have sat pat. But I reminded myself that the stock often bounces back to the vicinity of the red line before going way lower. So I avoided the trap and did not buy it back. Now what if it had kept rising? Then I would have jumped back in and I would have missed about 5% - 7% of the gains on it. Now that is not fun, but you have to balance it against potential loss of 20% - 40%. How quickly you should react to price movements is directly proportional to how risky the investment is. If you're looking at SPY, it is one thing. But if it is a biotech you are holding, then it can move 50% in blink of an eye. On the plus side, that same volatility means you can rack up 50% - 150% in a few short weeks and perhaps 200+% in a few months. The agility and the risk is the price of admission to the big gains. Different trading style do well with different stocks and are suitable for different traders/investors. Everyone needs to match their trading style to with their personality and their trading vehicle. Anyways, here's EDIT as an illustration of the above.