Let us look at a losing trade I have made.
It is losing money, but i have no regrets and no worries, because I have my risk under control. I have put stop loss sell orders and I know the maximum amount of money I will lose.
So, I can sleep at night without any worries.
I purchased the stock at 32.62. The reason was that:
1. The stock was going up in a smooth manner.
2. The DreamTai Stock Trading Software had a Power Ranking of more than 3, which showed that there was high buying volume.
So, I purchased it. But within the next few days, the stock turned downwards.
It is moving down in a triangular wedge pattern. It has support at 26.5 area, so I expect it to bounce from there.
It has previously bounced more than 6 times from that area.
If this stock goes below this area of Support, I will get out of this stock and focus on other stocks.
That's life and that's trading..we win some. we lose some..As long as we control our risks, we will win in the long run.
Sanjoy
