Should I sell?
The question i seem to get asked more than any other, on both my Introduction Calls and via Social Media / Email is a little something that looks like this….
What should I do with my current position, do I sell? I bought it at $100 and it’s now $50, and I’m losing a fortune and I don’t know what to do, please help me, what do I do?
It’s a tough question to answer, think about it, if I walked up to you in the street, and asked you if I should take a girl on a date, you’d probably have a puzzled look on your face, and you’d probably have some awkward questions to ask me…. this is kinda how I feel about being asked how you should proceed with a portfolio that’s already in bad shape.
Normally I choose to deflect the question, because what most inexperienced traders / Investors do, is they look for someone to “enable” their decision and in the process, dissolve themselves of any responsibility for the position they find themselves in, and that’s absolutely not what is going to make someone a better trader.
Ownership of the situation must be taken, and a resolve to never allow it to happen again has to be an absolute priority.
So as a matter of course, I pretty much refuse to answer the question and give the “advice” they are searching for, which quite often makes things awkward.
I have on occasions provided a Technical Chart for those in horrific positions, to let them see what I see, but most of the time, it’s a strange conversation.
Of course, everyone knows I have a good understanding of what Technical’s tell me over the short term which gives me the incredible success with entries (that’s what I’m known for), and more often than not, I tend to get it right… but the problem with holding stocks too long, and not having an understanding of the basics is really what holds most people back from success. It’s actually 1 of the easiest fixes for me. and it was only until, literally 4 days ago, I learned how to formulate an adequate response to the question I get asked the most.
The questions is pretty much this… Should I sell my catastrophic position?
4 days ago, I read an incredibly interesting piece by a trader that I admire greatly, who answered that exact question with the following response - and the more I thought about it - the more it resonated with me , so here is the response..
“Hypothetically, if all the money I have in this investment was in cash, and I could do anything I wanted with that cash, would my decision today be to buy that asset?” - thanks JC.
Whatever your answer to that question is… gives you the answer.
Needless to say, the situation one must find themselves in, to be forced to make horrific decisions like that are down to a few things…. but essentially, the trading / Investing style is usually built upon a method that is built on hope than it is sound technical judgement…. and this is the most frustrating thing about the conversations I have… the flaws I usually identify in a matter of minutes, really can be fixed with the correct coaching / teaching, so that you never make that mistake again… and when / if the market rebounds… would you prefer to be in a position to capitalize… and completely re-shape your strategies?
The markets have been kind this week, but it would be negligent of me to not make a small point.
As a note of caution - it should be known, that some of the biggest market rallies happen in down trends.
The key to good trading lies in capital protection… it’s a tough pill to swallow if you’re caught in a position, I know what the pain feels like, but until there’s a determination to never allow it to happen again… there is likely pain sitting just around the corner.
There’s also reason why in the last 30 Days, my community have only received 4 Trade Ideas… It’s Quality over Quantity… during volatile times, and no clear direction… proceeding with caution is the best approach.
General Electric (Short) +28.69% Move
Starbucks (SBUX) +6.10% Move
Apple (AAPL) +2.30% Move
Turtle Beach (HEAR) +9.45% Move
The easiest thing in the world is to carry on doing the same things and expecting different results… but, if you’re ready to make a change… there’s a link below - I’d love to start off by having a chat with you to see if we’re a good fit… What would the value be to you in the next 3 years if you could learn this approach… what would that look like? 5 figures? 6 figures?