My philosophy is to trade drill holes short-term … and great management teams long term. Â Seafield went parabolic at the beginning of the year on one great press release. Â The rest has been all pain. Â To avoid this pain, remember these simple rules (in no particular order):
- Don’t fall in love with a stock
- Take most of your profits on parabolic moves
- Set rising stops to protect profits
- Set an absolute stop to minimize losses
- It isn’t personal, it’s all business
- Taking some profits makes future decisions more rational
- You can’t “get rich” off a position until you sell at least some of it
- You don’t know the top … but you know the bottom
- Eat a little, eat often
- Selling isn’t divorcing … you can play it again
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