Have you ever made this mistake and felt this feeling?
Say you buy a stock at $5.00 thinking it is a great buy. You put in your order and it gets filled. Great!
Then, the stock shoots up, but just a bit, to say $5.04. You don’t want to sell yet, as it just started the move for you? Your target is like $.30 cent maybe to $5.30 maybe even more, who knows.
Well, what happens when the stock drops from $5.04 back under $5.00 to lets say to $4.87?
You make a promise to yourself and say this: The next time that stock passes $5.00 I am going to just sell it and get out as the trade was mistimed or something like that. As who "you" can never be wrong, not me (lol)
Well, guess what. That stock jumps past $5.00 to $5.02 right back testing that $5.04 and you get "GREEDY" think hey it may really get some legs now and make that move. Then it does not and drops right back under $5.00 back to good ole $4.87 range matbe lower.
What do you do now? Well, if you are like I used to be, again, you make the same mistake over and over agian. You justify in your head that the stock will go up, that you will be throwing away money if you sell here, you just need to hold out and you will get that big score! Well, next thing you know that stock drops down again! This time to $4.85!
Once more, you promise yourself: If that stock somehow comes back to $5.00, I will sell no matter what! I promise, promise, promise. Boom! That stock is right back to $5.00 in just five minutes!
But wait, you really DO NOT want to sell for a break even as if you do then it goes higher afterall to $5.20++ you'll kick yourself in the ass. Well, before you can even finish that greedy train of thought, the stock has dropped again, back down to 4.80!
Now, it is time to get serious with yourself. This is the third time you have thrown away a chance to get all your investment back! What are you thinking? This time, if by some miracle the stock rises back to $5.00, you have to sell immediately, no excuses!
Well, guess what? This time that stock is not coming back to $5.00. It will tease you that is for sure. But, it comes to a final stop at $4.95, never touching $5.00 again.
Have you ever felt this feeling? Have you ever had this internal dialogue and conflict while trading?
If you have been trading independently for any time at all, I will be willing to make a very big bet that you have gone through this exact scenario more times than you can count! Personally, I know I have!
When I first broke into trading, it seems like I was having this battle with myself every single day the market was open! I had the devil on one shoulder, telling me to get greedy, go for the big score and hold onto that stock in hopes that it will shoot past $5.00 up to $5.20 or $5.30!
On the other shoulder, the angel would be whisper in my ear: “Joe, sell the stock when it gets back to $5.00! You already had one chance, don’t miss another! You will regret it if you do, you know the right play is to sell back at $5.00 or $5.01, take the break even or small profit and be thankful it is not a loss!”
Unfortunately for many traders, the devil is quite commonly the loudest voice! Quite frankly, this internal conflict between greedy trading and intelligent trading is why many people lose their shirt in the market.
I know I have made this mistake. In fact, I am willing to say it, I am happy to have made this type of mistake in the past.
Do you know why?
Because making these types of mistakes led me to ProTrader Mike and MOJO Day Trading.
One day, after a rough month of trading where I lost over 60% of my account due to the type of greed and ignorance described earlier, I had had enough. So, I got on Twitter and Google and happened across ProTrader Mike. I saw the links to his website and his YouTube page and found myself taken aback. Needless to say, I was impressed! I knew what I had to do.
So I signed up for the day trading room, and quickly realized that if I wanted to stop with the nonsense and stop holding onto losing stocks, I would need to enroll in MOJO U!
In MOJO U, I learned to listen to the angel on my shoulder, not the devil. ProTrader Mike made it very clear: Never be greedy! Trade like a businessman, not a trader!
Since joining MOJO Day Trading and becoming a ProTrader, I have never again missed an opportunity to profit or break even 3 times on the same trade. It just doesn’t happen anymore, because I now only trade based on a system of positive expectancy. I am not trying to hit big scores on every stock. I am happy to take a small profit here, a small profit there. It all adds up, and the big scores come naturally without being forced, just be patient and give it time!
Now, my challenge to you: Try making a move like the trade I laid out for you earlier in the MOJO Day Trading Room with ProTrader Mike as your mentor/caddie/coach… It will not happen! It is impossible and NEVER happens in the MOJO Day Trading Room! That is not how ProTrader Mike teaches his system, it is not how he runs his business and it is not how traders on the MOJO Team trade! So avoid these "DEVILISH" mistakes and start trading with good side of MOJO!