Trust yourself. I know it’s difficult to do that now, but there are more reasons to do so than to not.
It’s humiliating to keep asking another person what they think a stock performance ought to do in a few days. You call in, with desperation, wondering if you did the right thing. Here’s a secret: Very few can handle telling you the truth if you’re wrong. Specially when they know you’re holding a large position. It’s not cruelty, human beings aren’t just wired to kick someone who’s already down on the gutter. They will struggle to give you hope, clawing for the information that might appease your senses.
Trust yourself. Here’s another reason why: Because it’s more acceptable to make a mistake you placed upon yourself, than to suffer the consequences done by another. No one can save you here, until you do. Your sufferings will not be borne by another person who gave you the wrong advice, nor is the money that you just lost from his own sacrifice.
It’s all on you, dear.
Every time you corner someone to give you advice, they will never know what to tell you. They do not want the mistake on their name, but they want the glory if it went right. Not every one is credible to do this sort of advice dispensing.
Read the charts on your own and trust on yourself more than how another person reads it. It’s YOUR money. In the end, you can only blame or award yourself.
Twice I went through a disappointing moment: The first one was this. I was holding an outperforming trending stock at a very low average. How I did that, I do not know. It was the rare instance I believed in the fundamentals, and the stock acted right. After a prolonged period of uptrend, it was beginning to show some bearishness. Low volume, disinterest in social media groups, a false breakout, and apparently, at that time, the price started to move in a narrow range.
I didn’t know what it all meant. I was getting anxious. It was the only green stock in my port so I had asked various number of people I deemed better than I do. I wanted to hold it, but a lot of times I’ve already been scolded because I wouldn’t sell my positions while it was still green with profit.
I heard a number of things, “lock in your profits now” or “you should rather be sure” or “that’s going down”. With a heavy heart, I did that next day.
To my disbelief, the uptrend continued. A month later, the same people who told me to sell, asked me this question. “Why the bloody hell did you let that stock go?”
The only probable answer is amnesia. But, again, I placed the blame on myself.
I have only recently learned to read a bit more indicators. For three days, I watched a certain stock move. I was getting so sure about it, I felt like my chances on this one is higher than most. The stock wasn’t mentioned anywhere, no one else was analyzing it and posting about it. Even its entire industry was almost being ignored.
The days on the market at that time was a bloodbath. Very, very few were spared. But this one was one of the few strong stocks holding, at one point it was doing a strong uptrend, but I was happily able to bottom fish. The day closed with my stock giving me paper profits.
The next day, the overall bearishness was worse. An hour into the market and there wasn’t even a single trade on my stock. I was getting anxious but I watched and watched. Eventually, it breached the price I was holding and then it breached support. Immediately, I sold it all. Calmly did I get out with only 100 pesos realized loss.
I don’t know what got into my silly mind but during those early hours of the market, another stock being recommended by a group was making a profit. I felt like that meant strength. That was my ONLY analysis on that stock. Hey, it’s green on a red day. I took a look at it before, but never really understood the appeal so, quietly, without telling anyone, I entered it bidding at a low point. The bid got hit and it stayed there for a while. And when it finally moved, oh how it moved.
I can’t tell you how fast it went down.
I was watching and the fastest I could get out was only a few ticks below my point. My broker account was lagging. I was cursing in defeat. Eventually, I did get out. But this time with a 1000 php loss.
I sat there and started thinking about what it taught me.
My own novice analysis got me only a hundred php of loss. My health remained relatively good as I have calmly executed my plan. In contrast, the analysis of the expert whom I had followed the advice has punched me with a loss ten times my own analysis, and it costed me a good amount of stress.
I bow down to the masters of the trade.
But then again, I have learned, that my personal distrust will never serve me. I might as well stab myself with my own weapons. If I do not believe I can win, then I must not play the game. Battles are won starting within ourselves.
I hope you trust yourself more.
P.S. Write me a letter. ❤