2024-04-23 04:00:15
[Don’t trade based on other people’s opinions]
Today…
There’s a ton of information on Twitter, Facebook, trading forums, etc.
The problem is…
It doesn’t make you a better trade, far from it.
Here’s an example. Imagine…
Someone posts a chart on Tesla and explains why he is bullish on it.
Next, there are 100 thumbs up and a flood of comments agreeing with the analysis.
So you quickly buy the stock of Tesla hoping to make a quick profit out of it.
Now here comes the critical part…
What if the price of Tesla drops 30%?
Do you sell, hold, or buy even more?
You don’t know because you’re trading based on the opinion of someone else.
You might be wondering:
“Well, I’ll just ask the original poster for an update on Tesla.”
Then one of these will likely happen…
– He sold his position for a small profit and you didn’t know about it
– He sold his position for a small loss but you’re still holding the stock
– He doesn’t reply to you
Either way, you’re on the losing end.
Do you see what I mean?
So, never trade based on the opinions of others.
They won’t tell you how long they plan to hold the trade, when to cut loss, or when to take profit.
Instead, you must have your own trading system that tells you when exactly to buy or sell. This way, you’ll never be at the mercy of others again.
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