I’ve had many people ask me, “When should I go ‘big’ on the market, and when should I sit out and wait for things to calm down?”
This is an important concept. Jesse Livermoore, an infamous stock trader, talks about the fact that he made more money sitting than he did actually trading…
I go back to my concept of trading: the act of buying and selling. Jesse Livermore had two different meanings behind his phrase, “I made more money sitting than I did actually trading.”
Waiting for Appropriate Setups
Some are waiting patiently for the appropriate set-ups (for the stocks to reach a certain level), for the chart to set up, for people to change their mind about a company, or for a company to bring a new product to the forefront.
In the Trade
If you’re already in the trade and have a position, you’ll make a lot more money sitting and letting that stock ride…
Let the stock ride as high as it can go until it stops moving. Using technical analysis, you can try to predict or project how high a stock will go – but you can never be sure. Some will go higher and lower than expectations.
When thinking of this concept of “sitting out,” you probably are asking yourself: Should I sit out more often?
#tradingaggressively #tradingstocks #stocktrading #emotionaltrading #tradingpatient #waitingstocks
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