Dec

25

 After wading through 372 pages of Marcel Link's High Probability Trading, I found the following nugget: "A trader needs to learn when to let go of a position. He is not marrying a trade; it's more like a typical date. Find the trade, get in, get what you can out of it and then get out without looking back. Sure, you'll promise to call the next day, but by then a different stock has caught your fancy." Many different questions come to mind. For example is instrument monogamy reflected in a trader/investor's personal life? Does getting used to trading multiple instruments mean that one never finds true happiness in the markets? Can one hope to apply the same pick-up method on different instruments, or is this just left to luck? Presumably a large number of stocks correlate closely to the averages, but many will not.

GM Davies is the author of Play 1 e4 e5: A Complete Repertoire for Black, Everyman, 2005

Scott Brooks writes:

I'm not sure if this author beat me to the punch on that saying, but I've been saying it for years. You marry your wife, but you only date stocks. You date them until you are no longer getting what you want from them, then you dump them. And unlike a women, if you ever choose to go out on a date with them again, they'll take you back in a heartbeat.


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