| If you are looking for valuable stock trading advice, | | | | so, there's just as likely a chance, if not more, that |
| there's one rule that you should always adhere to. | | | | the stock will go down in value and by a lot more |
| The first and most important thing you need to do is | | | | than that. |
| to protect your investment capital. There have been | | | | It's not unheard of for stocks to go from their all |
| a lot of times, I've bought a stock only to watch it | | | | time highs to pennies in value or no value at all. If you |
| go down in value. It's these kinds of investments, | | | | do not sell when it drops by 7-8%, what sell rule will |
| where you lose money, that can destroy your | | | | you follow? When will it have gone down enough to |
| investment portfolio and reduce it to nothing. | | | | trigger you to sell it? By having a firm sell rule in place |
| That's why, for every trade you make, you need to | | | | right up front, this will take the emotion out of it. |
| make sure that you sell any stock that declines in | | | | The farther a stock goes down in value, the harder it |
| value by 7-8% from your purchase price. Any time, | | | | is to let go of it. This is because, you want it to |
| this happens, sell the stock. While it is possible that | | | | come back to your purchase price before you sell it. |
| the stock may rebound after it goes down 10% or | | | | The problem with that strategy is that it rarely does. |