'If my stock does not act as I anticipated, I immediately determine that the time is not yet ripe - so I close out my commitment.'
About this quote
- What does it mean?
- If a stock does not behave as expected, the trader exits the position immediately.
- In plain terms
- Close out commitments when the stock does not act as anticipated.
- What can you take from it?
- Exit positions quickly when market action contradicts your expectations.
Where it applies
Putting it to work
Questions to consider
- How do you know when a move is not ripe?
- What is your rule for cutting losses?
Another view
Exiting too early might prevent capturing delayed but valid market moves.
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