DVN Devon is called away for a small profit.
With the DJIA at record highs it is easy to say that I would have done better sticking with my most of my recent longs. However, hindsight isn't readily available in the present. Some traders make the mistake of learning yesterday's lesson and applying it to today. If someone knows the market will advance another 3% next month, of course it will pay to be bullish and refuse to be shaken out on any dips.
The most recent example is housing stocks that gapped down at the open on Friday, but recovered most of the losses by the close. Again, the hindsight glasses always work, but are not available at the time of decision. Just when a trader becomes complacent and stops taking small losses, the market will hand out a big loss just to remind them that complacency can be dangerous.
No comments:
Post a Comment