Forcing Trades, Bad idea
Forcing trades can work against you in the stock market. Every trader has tried to force trades at one point or another. Often times this will work against you. Anyone who has had any experience in the stock market has had one of those I wish moments. I wish I would have bought Microsoft when it started trading, I wish I would have got into stock XYZ before this big jump, we all have had them. The problem with that is it makes you feel bad for missing an opportunity. This in turn makes you want to be fully invested in the market at all times so you will not miss any more great opportunities. Bad idea! You should never let emotions affect your trading. Getting into a position simply to be in a position will hurt you more then it will help you. Anytime you place an order you should have a good reason for doing so. It should give you a signal that it is going to move in your direction before you enter it.Forcing trades becomes even more of a bad idea when the markets are hard to trade. During this time you probably do not want to be fully invested in the markets. In fact if the markets are running wild making a $300 gain one day and a $400 point drop the next you may want to sit out of the markets and just wait for the market to pick a direction. If you still have the urge to be in something it is important to only take trades you feel are the best of the best. Taking trades with strong technicals, strong fundamentals, and looks like they are the Gold will save you from taking a lot of losing trades when the market is trying to figure out what it wants to do. When the market is clearly trending money you may want to be a little more aggressive but still remember to follow your rules. It is easy to get caught up in the feeding frenzy of a trending market. That can hurt you when the market turns around. Have A Great Story About This Topic?Do you have a great story about this? Share it!
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