Always have a stop-loss and an exit price clearly defined

Never try to fight a trend by taking positions against the prevailing trend.

Though it may be always tempting to buy a stock that is falling with an intention to lower the average cost of acquisition, such a practice should be avoided. This will be tantamount to throwing good money after bad.

Always have a stop-loss and an exit price clearly defined before making a trading decision.

There are several methods to arrive at stop-loss levels. If you are unable to identify a logical or reliable stop-loss level, use a fixed money-based stop method, which fits into your psychological comfort zone.

Never hold on to a trading or investment position that has moved past your psychological zone of comfort.

If you are not disciplined to cut positions on the breach of stop-loss, it could turn out to be a psychologically arduous task to cut those loss-making positions when prices keep moving against you.

Always take care of your losses and profit would take care of themselves.

Periodical profit booking and re-entry on fresh "buy" triggers are crucial aspects of success in stock market investing. There is nothing wrong or inconsistent in buying a stock at slightly higher levels after having booked profit earlier.

The key aspect is to ensure that the long-term trend is intact and there is a valid reason to take fresh exposures.

Keep track of stocks you find are in a long-term upward trend and take positions on fresh "buy" triggers.

Even after the stop-loss is hit, investors should not ignore the stock they have been tracking. It may well turn out that the stock could reverse trend and get back to the target zone envisaged earlier.

The stop-loss might have been hit owing to either an incorrect stop loss or a change in the short-term trend. The stock price may reverse at lower levels and manage to move to the earlier determined target zone.


Post a Comment

All comments are moderated. Please post no spam

Disclaimer & Privacy Policies

(c) Mrs. Ruby Christy. This site and contents are owned by Mrs. Ruby Christy;
Use of this website and/or services offered by us indicates your acceptance of our Disclaimer& Privacy Policies.

Information and opinions provided on this website ( has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. and its affiliates, information providers or content providers and R.John Christy and his Family shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this website or feeds, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information.,its affiliates, information providers ,content providers and R. John Christy and his Family shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this website. Any action you choose to take in the markets is totally your own responsibility. and R. John Christy and his Family will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. This information is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. Opinions expressed by R. John Christy are his own and not of his past, present and future employers.
The DoubleClick DART cookie is used by Google in the ads served on this websites displaying AdSense for content ads. When users visit this website and either view or click on an ad, a cookie may be dropped on that end user's browser.
  • Google, as a third party vendor, uses cookies to serve ads on this site.
  • Google's use of the DART cookie enables it to serve ads to your users based on their visit to this site and other sites on the Internet.
  • Users may opt out of the use of the DART cookie by visiting the Google ad and content network privacy policy.
  • never collects any personal information of visitors.