2023-12-19 04:01:06
[Donāt trade based on other peopleās opinions]
In todayās age, you can easily access a ton of information from Twitter, Facebook, trading forums, etc.
The problem isā¦
It hurts your trading results.
Hereās an example. Imagineā¦
Someone posts a chart on Tesla and explains why he is bullish on it.
Next, there are 100 thumbs up and a flood of comments agreeing with the analysis.
So you quickly buy the stock of Tesla hoping to make a quick profit out of it.
Now here comes the critical partā¦
What if the price of Tesla drops 30%?
Do you sell, hold, or buy even more?
You donāt know because youāre trading based on the opinion of someone else.
You might be wondering:
āWell, Iāll just ask the original poster for an update on Tesla.ā
Then one of these will likely happenā¦
1. He sold his position for a small profit and you didnāt know about it
2. He sold his position for a small loss but youāre still holding the stock
3. He doesnāt reply to you
Either way, youāre on the losing end.
Do you see what I mean?
So, never trade based on the opinion of others.
They wonāt tell you how long they plan to hold the trade, when to cut loss, and when to take profit.
Ignore the noise. Get your hands dirty. Stay accountable to yourself.
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