I think the greatest gift as a trader is knowing when to cut loss. I had been through the route of not cutting losses where losses swung bigger and bigger and there was no more room for profits where I had to take a super big one and it's hard to recover. Hence, from that painful experience, I know the importance of taking small losses so that the future profits can take care of itself.
Yesterday I traded OCBC. I went longed as I saw that there was a chance of the stock turning but to my surprise the stock looked capped and hard to move. As it bounce up and down, I had a chance to even get out without a loss but I decided to wait a while more and true enough, the market gave way and I decided to take a small loss. Longed 10.93 and cut 10.92. It was a fast cut or today I would have suffered more as OCBC gap down and tanked to a low of 10.84. It's getting lower each day and the risk to short is high. Watching for a turning point when it signals.
Ronald K - Market Psychologist - A Stock Market Opportunist
