RE: Red Braces Brigade21 May 2020 01:40
6. I think a good example about not worrying about taking a loss if the market turns against you is when the news came out here about Japan and the Bonds - I think from memory that the share price went down for a couple of days, but lets say for example that you sold your 5000 shares for £12 ie £59,994.05 (after buying them for £13 for £65,330.95) you would have taken a a "loss" of £5,336.90. If you then used that capital to buy shares again at £11 then you would be buying 5426 shares - so when they get back to £13 and you sell, then you're actually in profit by £5,201 rather than just breaking even. Don't worry about the share price going down as it is an opportunity to buy more shares, and more importantly keep you in the game day after day. If someone had bought the shares here on 29/11 at the peak of £13.90 then they'd still be here twiddling their thumbs waiting for the share price to recover and make a profit.
7. Is self explanatory really - the graphs/charts are an excellent tool and the more you use them, then the more confident you become. I have noticed though that sometimes, say for arguments sake early in the day that there's a range of £13.10-£13.60 - if the share price hits those figures, and there's no definitive spike/shake, the graph will change to what is now expected to be the revised top/bottom for the day.
8. Emotion is the biggest enemy you will have in trading - control/manage that and you're half way there. The point I'm making here is tomorrow is always another day - if you haven't sold at the top/bought at the bottom, don't punish yourself emotionally - for me, I "work" 40 weeks a year - that's 200 trading days - if I keep beating myself up psychologically if I've got something wrong then I'm always going to be going around in a circle - and without a clear head, you make the wrong decisions trying to chase your tail (I know as I've been there!), so you need to take a longer term view because what you loose on the swings you gain on the roundabouts - nothing goes up or down in a straight line so there's always going to be another opportunity to make good what you missed out on today. To make things a bit more interesting for me, I set myself little goals/targets that I want to get to by certain times in the year - makes it a bit of fun and I think of what I'm able to do with the money once I get to that target.
9. Don’t panic
10. If in doubt, do nowt
11. New rule to be added to our cheat sheet - important to remember if we have a spike/shake anywhere between 11 and 12 one day, if the shake in the afternoon doesn't have a bounce, then we have to wait till the "bottom" of the trend happens which is between 11 and 12 either the next day or day after before we buy - need to have a committee meeting and agree before we buy again - unfortunately if I had remembered this rule on Tuesday, we could have sold 1000 shares at £12.70 on Tuesday, and bought back 1127 shares today - so very profitable rule to remember.
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