Home > The Stock Market > PLAYING TODAY’S STOCK MARKET TIP #8: DON’T PLAY TOO LONG!

PLAYING TODAY’S STOCK MARKET TIP #8: DON’T PLAY TOO LONG!

October 24th, 2011

DON’T PLAY TOO LONG: Spend significantly more time out of the market than in it. If it’s the thrill of action that you crave, then find other games of chance to fill this emotional need. Savvy players get their kicks out of anticipating the next big move in the market.

Shedding more light on this same idea comes from one of the most colorful speculators in Wall Street history, Jesse Livermore (1870-1940), who once stated, “There are only a few times a year, possibly four or five, when you should allow yourself to make any commitment at all. In the interims, you are letting the market shape itself for the next big move.”

Remember that being out of the market in a 100% cash position for your trading account allows you the break in time to rebalance your emotions and prepare yourself for the next trading opportunity. If you’re playing too long at any game of chance such as cards, dice, roulette, or stock market trading, there’s a natural tendency to get sloppy in your decision-making.

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“Gambling is taking a risk when the odds are against you, like playing the lottery or pumping silver dollars into a slot machine. Speculating is taking a risk when the odds are in your favor.”

Victor Sperandeo

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