This video explains that the real problem in trading is not always selling too early, but selling without a clear exit plan.
A trader buys a stock at $100, sells at $105 for a small profit, but then watches it rise to $120. Even though the trade was profitable, it feels like a loss because of the missed upside.
The key message is that trading should not be treated as all in or all out. Different market conditions require different exit strategies:
1. Use a price target when the stock is trading within a range.
2. Scale out when the upside is uncertain.
3. Use a trailing stop when the stock is in a strong trend.
The Information presented above is for education purposes only, which shall not be intended as and does not constitute an offer to sell or solicitation for an offer to buy any securities or financial instrument or any advice or recommendation with respect to such securities or other financial instruments or investments. When deciding about your investments, you should seek the advice of a professional financial adviser and carefully consider whether such investments are suitable for you in light of your own experience, financial position, and investment objectives.
In no event shall Sahm Capital Financial Company be liable for any damages, losses or liabilities including without limitation, direct or indirect, special, incidental, consequential damages, losses, or liabilities, in connection with your reliance on or use or inability to use the information presented above, even if you advise us of the possibility of such damages, losses or expenses.
