Morning all. Thanks HLL and the team. Thanks gttrain.
Do I like a Stock? Here's some notes on a discussion I had with myself.
Proper share trading is all about the share price and where it's trending, not making predictions. Trading indices or commodities makes it easier to remain dispassionate about your trades.
However, we are trading spec stocks, and that leaves the door open to getting emotionally involved with your trades. Espc as it is useful to have some understanding of the stock's FA so you can gauge public interest. And that leads to making predictions about what a stock might do (and dreams). That gets you into trouble imo. And it's not what the pros do.
So if I was to say I 'like a stock', that means about as much as I would like to eat a pork belly. What I would like about the stock is the 'set-up' re the chart, SP trend etc.
If you 'like' a stock for its FA, that's 'stock picking' not trading.
You have more chance of success trading rather than stock picking imo. Of course, those who have picked a great stock would disagree. But hey, I buy Lotto tickets.
It can all become a bit semantic so best to have a conversation with yourself about how you are managing your positions. Everyone agrees you need to keep emotions out of your trading.
