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Dump it Here

Discussion in 'Beginner's Lounge' started by Skate, Dec 17, 2018.

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  1. sptrawler

    sptrawler

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    Keep them coming, there isn't one I disagree with.
    It may end up worth publishing, life's lessons on wealth creation.
     
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  2. Skate

    Skate

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    Hi @sptrawler

    Thank you for your kind words.

    Skate.
     
  3. jbocker

    jbocker

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    Great work Skate. Each message is food for thought.
     
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  4. Skate

    Skate

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    Hi @jbocker

    Thank you - I’m glad you have taken the time to read the thread or a few post.

    Skate.
     
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  5. Skate

    Skate

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    Apologies for re-posting

    I'm going to dump some of my previous posts to correlate them in one thread.

    Skate.
     
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  6. Skate

    Skate

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    When do we sell a position

    Investors frequently wrestle with whether they should dump a weak position or wait it out and hope for a rebound

    Selling is one of the most underrated and unappreciated tactical tool any trader has.

    Skate
     
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  7. Skate

    Skate

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    Have you ever told yourself this story..

    “I’ve held on to this stock for this long, so I might as well continue to hold.”

    Ultimately, that logic leads to giving back big gains and incurring big losses. Investors are often paralysed into inaction by concluding that it is too late to sell a stock that is already down substantially. This thinking keeps you emotionally and financially tied to under performing stocks and can cost you substantially while you wait and hope for a recovery.

    Skate.
     
  8. Skate

    Skate

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    It’s never too late

    It is almost never too late to sell a stock in which you have a large loss. You should consider that something has probably changed. If you bought for technical reasons, you probably were undisciplined and let a loss get out of hand.

    Skate.
     
  9. Skate

    Skate

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    Misery of selling a large loss

    When the misery of a big loss is suddenly removed by selling the position you'll feel a surge of energy - the weight will be lifted and you might be surprised at how readily you can find other opportunities that will help you make up your loss.

    Skate.
     
  10. Skate

    Skate

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    Outperforming the market

    Cutting losses quickly and protecting capital is the key to outperforming the market over the long run. The market will always offer us opportunities in which to profit, so we need to make sure we always have capital handy and that it isn’t tied up in under performing stocks.

    Skate.
     
  11. Skate

    Skate

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    Be a good loser

    We all know that draw downs and losses are part of the trading process, so take it on the chin and be the ‘best loser’ you can possible be.

    Skate.
     
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  12. Skate

    Skate

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    Selling is easy
    Selling is cheap and easy and can be undone in the blink of an eye.

    A stumbling block
    Too many seem to think that if they sell a stock, they are somehow prevented from buying it back again. Not so. For most investors, the biggest stumbling blocks to selling are mental.

    Skate.
     
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  13. Skate

    Skate

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    Wimps

    In fact, I’ll go so far as to claim that a smart wimp who runs and hides when the going gets tough generally produces better results than brave souls who are proud of their ability to suffer great monetary pains while they wait for their convictions to be rewarded.

    Skate.
     
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  14. Skate

    Skate

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    Being macho

    The problem with the “macho” approach to the markets is that the consequences of being wrong are so onerous. The stronger your convictions and beliefs, the more invested and braver you are, and the greater the chance for a backbreaking loss. The wimpy investor knows that the key to success is staying in the game for the very long term.

    Skate.
     
  15. Skate

    Skate

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    Bravery

    Bravery can pay off nicely at times, but it can also cause you some grave injuries. Don’t be too fast to discount your feelings and emotions. Good investing requires a healthy emotional state.

    Skate.
     
  16. Skate

    Skate

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    The market is not a level playing field

    The stock market is not a level playing field, but most individuals invest as if it is. They assume they have the same information as everyone else, so they focus on the facts that are readily available to them and ignore how a stock is actually moving.

    Skate.
     
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  17. Skate

    Skate

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    Someone out there always knows more than you do

    We don’t consider that maybe someone out there knows a lot more than they do and perhaps that might account for why a stock is moving the way it is. We have all seen a situation in which a stock suddenly starts making big moves up or down, and then a short time later significant news is released that explains why that move took place.

    Someone out there always knows more than you do, and you shouldn’t assume otherwise.

    Skate.
     
  18. Skate

    Skate

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    Foolish

    It is just plain foolish to think that it is an even playing field when it comes to receiving valuable information. There is absolutely no way small individual traders like us has superior knowledge about a company. But the good news is that small Investors don’t need an informational edge. They make up for it by moving fast and being reactive.

    The stock market is not an even playing field, and rather than complain about that fact, we must use it to our advantage by paying close attention to those who do have inside information.

    Skate.
     
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  19. Skate

    Skate

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    How to Read a Bar Chart

    Apologies for posting something so simple as a Bar Chart - it maybe help someone (you never know)

    Bar charts are often called OHLC Bar charts.
    The Bar includes information on the Open (O), High (H), Low (L) and Close (C) price.
    Here is how to read a bar chart, and what each part of the bar mean.


    Bar Chart.png


    Open - The open is the first price traded during the bar, and is indicated by the horizontal foot on the left side of the bar.
    High - The high is the highest price traded during the bar and is indicated by the top of the vertical bar.
    Low - The low is the lowest price traded during the bar, and is indicated by the bottom of the vertical bar.
    Close - The close is the last price traded during the bar and is indicated by the horizontal foot on the right side of the bar.
    Direction - The direction the price has moved during the bar is indicated by the locations of the opening and closing feet.
    Up Bar- If the closing foot is above the opening foot then the price made upward progress during the bar.
    Down Bar - If the closing foot is below the opening foot then the price made downward progress during the bar.

    Skate.
     
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  20. Skate

    Skate

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    Final Word on Reading a Bar Chart

    It takes a bit of practice to get used to reading a bar chart, especially when the price is moving very quickly.

    Remember the open is always on the left, and close always on the right (like how you read: right to left, because the open always comes before the close).

    The vertical part of the bar represents how high and low the price went during the interval of the bar – in our case each Bar represents a week’s worth of Trading.

    Skate.
     
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