Learn to Walk Away from a Stock

When a stock is peaking, an investor runs the serious risk of missing the top area altogether if he tries to stretch winnings too far. Once a stock stops rising and starts declining, the difficulty of selling it becomes even greater. Giving up points that have already melted away is more painful than imagining giving up points of paper profit that have not yet been created. A stock trader's mental state heads south with the stock price, weakening his decision-making abilities. Keep in mind that when the price objective is reached, the best policy is to sell the stock at market and walk away and don't look at the quotes once the stock is sold.


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Trading in stock, options, Futures, and FOREX markets carries a high level of risk, and may not be suitable for all investors. Before deciding to trade these markets, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading, and seek advice from your own independent financial advisor. The member acknowledges that unique experiences and past performances of the Stock Advisor Group do not guarantee future results. The member understands and acknowledges that trading Stocks, Options, ETFs, Futures contracts and Stock Options are suitable only for knowledgeable investors who understand the risks inherent in trading currencies, have the financial capacity and willingness to incur losses. The member is fully aware that StockAdvisorGroup.com may use an electronic trading system to generate trades, which exposes the member to risks associated with the use of computers, and data feed systems relied on by Stock Advisor Group. The member agrees to accept such risks, which may include, but not limited to, failure of hardware, software or communication lines or systems and/or inaccurate external data feeds provided by third-party vendors. The member understands that no "safe" trading system has ever been devised, and no one can guarantee profits or freedom from loss.

Hypothetical Results Disclosure
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