Almost every stock trading service has rules to trade by with the hope of protecting themselves from costly mistakes.
Not all follow their own rules very well, though,
100 Trade Jack demonstrated how important discipline is just this week with a little bit higher than normal risk trade.
The trade was entered into near the close on Tuesday, at $5.40 per share. Jack stated that his rules demanded that this trade be short term and it had to start working in our favor right away.
On Wednesday, the stock traded a little bit higher most of the day, but towards days’ end started to sink back towards the previous days close.
This was not working out the way Jack had prescribed it needed to in order to stay in the trade, so he sold. I don’t know what price he got out at, I received $5.42 and a fraction so it’s basically a wash.
The following two days, the stock is down – closing at the low – to $4.65, a 75 cent – or 13.8% loss.
Jack actually could have waited another trade on the day and not violate his trading requirements much, but his gut told him to get out so he did.
That’s how you avoid mistakes. Stick to your rules, listen to your gut.
Did you know you can try out 100 Trade Jack for 60 days and still get a refund if you don’t think it’s for you?
We also have a complete 100 Trade Jack Review if you want to find out more.
