Sustainability first before anything.
It’s pointless to make millions due to luck, then lose it all out of kamikaze.
A lot of traders fall for this because they are so hungry to make that quick buck without really covering their base — going through the process and finding their system.
Some do find a system, but mid way they overrule the system when it encounters down sides. Meaning pag ‘na-ipit‘ or nag ‘kamali‘ they won’t cut loss. Once you give exceptions to the pain, you will make it a habit, and this habit often leads to the ‘death’ of many traders having the mindset “babawi rin yan, patulugin ko nalang muna“.
Luck doesn’t always save your ass in these kind of situations. I’ve seen veteran traders, those of around 10 years in experience, never make it back once they had a big hit with majority of their capital stuck just because of one undisciplined call.
Some of the most common reasons would be ‘OK lang may fundamentals naman eh’
Here’s a few names with so-called fundamentals that are still on a slump even after a few precious years.
The market will always be there, you just have to survive, and progress consistently. You cannot do that if 80-100% of your capital is stuck in a solid down-trending stock. In many situations it would take you 3 years (good case) to sometimes 7 to 10 years (reality case) before breaking even.
While there will always be a chance that some dead names will bounce overtime, take a look around how often (or I mean rare) that happens. Kalma lang tayo sa market, one step at a time.
Wag kang papasok ng walang protection. Baka pag-sisihan mo hijo.
This is where risk management, balanced port allocations, stop losses, and all the boring and ‘un-pleasurable’ aspects of trading comes in. They protect you from a lifetime of regrets.
Been a while since my last post here, I’ve been really busy, I’ll post more updates here soon.
God speed everyone 🙂