Short Term Trading Weekend Lounge: 4-6 May, page-15

@minoil another great post.
There is a lot to be said about cutting losses and what I have learnt from many on here especially the trading diary (and through financial punishment ) is it is much harder to cut speccies than any other cap - For the price fluctuations are much greater and when you drop a pip or two you could already be down 20- 50%, so its easy to conceive the thought that it will bounce back up a pip or two in no time....annnndddd 2 years time the bottom draw is full of red dogs.

However having said that - shell companies can be a good example of a time to hold out the storm and ignore the noise although determining when to hold and when to cut is the question at hand, with every mini cap promising to be the next PLS dream story you have to filter and wade through the crap and this may mean getting your feet dirty for a small period of time - research, analysis and experience has to be used to tell them apart.

Finding the bottom or buying the base is a tricky ploy but can easily keep your portfolio from appearing like the red sea and this is where patience and price volume analysis can be very useful when looking to pull the trigger on an entry and keeping those pesky losses to a minimum while your wait for the break.

Furthermore I personally feel for momentum/swing trading it is far easier to cut losses, if you run it like the casino would on ratios and keeping your stops tight , jump in while the wind has your back and if it changes get out before you're face stays that way forever!

Trading is immensely psychological and a huge part of it is understanding what and why we do the things we do. Feeding off your own emotions is a sure fire way to go broke. They say that the fear of missing out is far greater than actually losing money and I would have to agree with them, the amount of times I have sat on a dog not wanting to miss the stellar drill results! That has been the hardest thing for me to overcome but it was the most financially viable skill I have learnt. Once you're in the green take some froth off the top of move you're stop.

GLTAH