How to Turn a 100% Gain into a 1,400% Gain
Via Growth Stock Wire:
It never was my thinking that made big money for me. It was always my sitting. Got that? My sitting tight!” – Jesse Livermore
Jesse Livermore was one of the most respected traders of the 1920s. He built one of America’s largest fortunes at the time with his skills in the stock and commodity markets. The classic book Reminiscences of a Stock Operator contains his story.
“Sitting tight” was Livermore’s term for not selling when he was up 20%… 50%… or 100% on a position. Sitting tight is the art of not taking quick profits.
You see, most traders and investors get tempted to sell their winners after they see a modest profit… like, say, 33%. They get fidgety. They tell themselves that, “You can’t go broke taking a profit.” They always feel like they should be doing something, so they take action and jump out of the winning trade.
This strategy will kill your long-term trading performance.
…When you are right on a trade – whether it’s tech stocks, biotech stocks, oil, or gold – ride it for all it’s worth. Don’t cut your profits short. Don’t sell until you see a legitimate reason for concern… like a decline of more than 15%… or an asset’s refusal to rise on bullish news. One of the best ways to get rich in the stock market is to get in early on a big trend and ride it for years… You can’t ride a trend if you don’t sit tight.
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