Throughout our Lesson - 3, we are discussing identifying Market Trend (Up Trend/Bullish, Down Trend/Bearish and Sideways) manually. This post is the closing of the Lesson - 3.
Usually, we like the Up Trend or Bullish market because it gives us profit.We dislike the Down Trend or Bearish Market because it gives us loss. And we feel safe in sideways market because at least, share price is not going to down.
Why we dislike the down trend market? Because, in down trend market, our view is short term, we hold shares and hope that market will rebound soon and gives us a big profit. So, we can't able to cut the loss early and finally, we carry the small loss to huge loss.
If we can able to cut the loss early, we will also enjoy the down trend as like as up trend. We will only dislike the Sideways market because it will give us nothing. I'm finishing this post by a famous quote :
"Winners hold their winning trades, losers hold their losing trades."
No comments:
Post a Comment