Essentially The Most Shockingly Ridiculous Stock Trading Rules Of Numerous Traders

In stock trading, the idea to let your winners ride is more problematic than almost all stock traders think. Steven, an investor, closed out his position in a strong uptrending stock for a 3% gain last Friday. The following Monday when trading began, the stock continued to go up. Steve was annoyed that he didn't hold the stock a little longer.

A part of how I educate stock traders consists of scrutinizing their thought processes and their reasons behind doing things. I asked him what made him sell out of the stock that Friday. He said that he did not want to hold the stock going into the weekend.

WTF?

Professional traders will frequently close out positions on a Friday. You aren't some institutional trader with huge amounts of money at risk. You're not a market maker either. You don't have a whole lot of funds in jeopardy.

Keep in mind, the goal is to let your winners ride and cut your losers short. If one makes a rule that you cannot hold a stock over the weekend, then you are not allowing your winners to ride. You are going to instead be letting go of your winners too fast.

Steve closed out of a strong uptrending stock for a foolish reason. You cannot sell out of stocks for foolish reasons if you wish to let your winners ride.

There is going to be lots of stuff that bother you in stock trading. One thing that should not bother you is if you should hold over the weekend. Building up rules like this is like attempting to punch your way out of a paper bag while tying up one arm. Do not put arbitrary obstacles in your way like thinking I can only make profits Monday thru Friday but I have to sell on Friday because I cannot hold any stock over the weekend.

I recall a trader I met that would only buy large cap stocks that paid a dividend. Finally, he had a long time horizon and thus it needed to be a stock that he was prepared to hold not less than 6 years. He came to me and desired to understand what I could do to assist him in becoming a profitable trader as he was not capable of making money in the stock market. I put my arm around him and said that he has to either accept the fact that he's an idiot, or that he'll never make money trading and so he should get out.

Never put obstructions like these in your way. Let the market show you what you should purchase and when you're ready to sell. In case you are in a strong uptrendng stock, just take it easy and enjoy the ride. That's the best way you will truly be able to let your winners ride.