Friday, 9 November 2012

TWAT -Trade With A Target

When you are entering a trade, it is obvious that you have done your research before entering into it. It is equally important to analyze right before buying a stock or derivative to decide what would be the appropriate price to exit it with a profit. This exit price should strongly be embedded in your mind and you should have the discipline to exercise what your mind says in the first instinct.

It might happen that when you reach the target the greedy fella inside you might tell that there is still more upside to this trade, play along with it. The prime lesson over here is that you should know to control greed and book profits on time. Don't wait for the market to beat you. You should be the one beating it.

Moral: Have the selling price in your mind before entering a trade.

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