Knowing when to sell is also a fundamental part of trading and is the most difficult part of the art of investing - should I cut losses, hold, buy more, take profits etc. etc.
- you can easily turn a bad call into a catastrophic loss by hanging in too long and averaging down etc. - sometimes you just have to heed the market rather than use the fundamentals....
I set stop losses on all trades and while I don't always immediately implement because of the "bounce" factor, it is something to pay very close attention to. [On trading, Padley implements the average true range at 2xATR, applied over 15 trading days for punts and over 15 weeks for investments].
The "bounce" factor is referring to the increased volatility introduced over recent times by the bots and algo trading sitting on top of a treading market where algos follow the word in the announcement / news rather than the content and then the market (incl shorters) follow causing mayhem......but also opportunity!
And grateful for the bounce today and for holding on....hope ya'll did the same
GEM Price at posting:
$3.66 Sentiment: Hold Disclosure: Held
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