Trade the stocks with a humble heart

I really think, as a human being, we need to trade the stocks with a humble heart, actually, a very humble heart. Because the stock market is very very complex for any one to precisely get in at the lowest point and get out at the highest price. That's impossible !

However, that doesn't mean nobody can make money from the stock market. Instead, some people really made a fortune from the stock market. One key factor for us to be able to make money from the stock market, I think, is to be humble !

Then how to be humble ?

Here is my answer: when the market is against you, you need to be humble, and then follow the market, not fight with it.

How to turn this answer into practice ? Take selling as an example:

• You bought a stock ABCD at $10 and expect it go to $20 in one month. Unfortunately, it just climbs to $15 and coming back to $14, $13, and $12 ... what should you do then ? Still hold it and wait for your expected $20 to come in one day ? Absolutely not ! You need to be humble and protect your profits. Then you might wonder, what will happen if after my selling at $12, the stock jumps to $13. Take it easy, then. If you still think the stock ABCD can go back to $20 with a solid reason, then chase it ! No big deal ? right ?
• Holding positions always means you are exposed to some market risks. So stay alert ! Once the market development is against your expectation. Just sell all of them and protect yourself. Again, you can always buy back later when the market performs the way you expect.

As always, we

• buy in positions for expected profits; If the expected profits don't come as we expected, we need to exit the position to avoid the cash loss risk.
• sell out positions to avoid the expected loss; If the expected losses turned out to be a good profits opportunity, we need to be humble and buy back the position to avoid the missing opportunities.

However, to make these more practical, you need to build up a systematic approach and follow it closely by yourself.