What to do when trades become accidental long-term investments…
| | | | | | Having trouble saying goodbye to a trade? Every trader's been guilty of it at one point or another … myself included. I'm talking about 'bag holding,' or the 'hold and hope' mentality ... when you take a trade with a short-term profit in mind, but end up holding way too long. It's part of the learning process for traders — odds are you won't actually understand it until you've experienced it. Just about every trader has gone through ... but if you want to be a long-term, self-sufficient trader, you've gotta get it out of your system. To clarify — that doesn't mean you won't ever take losses. Even seasoned traders take losses. It's about being realistic and avoiding emotional decisions in trading that can blow up your account. Wanna know how to avoid bag holding? Keep reading... |
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| | | Tim Sykes teaches regular people how to profit from home trading stocks... How? After 20+ years of wins and losses... He simply shows you what he's learned along the way. Like a tour guide. What most would consider "regular people" have become masters of their own destiny under Tim's guidance. Want to get a pro like Tim in your corner?
Apply for the Trading Challenge now.
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A bag holder is a term to describe a trader who holds a losing position too long. They have this idea that 'it's not a loss until you sell' ... so instead of facing reality, they keep holding on. Here's the harsh truth: a loss is a loss whenever your position's in the red. Every position you enter has the potential to be a winner or a loser. Some trades will go against you, no matter how much experience you have. That's why making a plan for every trade — and getting out fast when it goes against you — is so important. Bag holding can be detrimental to your psychology and your account. So you've gotta be willing to admit when you're wrong. The first step to avoiding this fate? Understanding the reasoning behind it. | Hey, we're only human. We're hard-wired to have certain ideas about winning and losing. We don't want to admit defeat. We hope that things will turn around. The stock market does NOT reward this way of thinking. For most traders, getting into the right mindset requires a little reprogramming. Remember, 90% of traders fail ... I'd venture a guess that very few who fail have actually tried to change their mindset. Losing hurts. Taking losses is emotionally tough. It means admitting that you're wrong… But there's also a certain sense of freedom that comes with letting go. Sitting on a loss is an emotional burden. When you finally take the loss and turn the page it can free your mind. Ready for a reality check? | |
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Paul Scolardi wants to show you a remarkably effective (and amazingly simple) way to trade stocks from home… ...without a fancy setup. ...without burning yourself out. …without having to immediately quit your day job. |
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Losing is Part of Trading I know what you're thinking ... 'I want to learn how to make winning trades. I wanna make bank, bro!' Slow down. We all want to make money. But that doesn't mean every trade will be profitable. Successful self-sufficient traders take losses. Some of them take losses frequently. The secret is to keep your losses small. That means never bag holding and always getting out of losing positions fast. There's no holy grail trading plan that delivers 100% winners. I'm not here to teach you to avoid losses. I'm here to teach you to take the losses responsibly. | How to Really Avoid Bag Holding Wanna avoid bag holding? Be prepared to cut losses. Make it easy on yourself: have an established plan in advance, and have an exit plan in case you're wrong. Write it down. Review the plan every day you're still in the trade. Make sure that as long as you're in the trade, the price doesn't close below your stop. If the price does drop below your stop, sell. It's simple enough, but that doesn't mean it's easy. Make the decision before you get in the trade — and have the discipline to follow through. You're not a trader to be right all the time. You're a trader to attempt to make profits. I've made over $5 million* during my trading career. Keeping my losses small has been a huge part of my long-term success. Anyone can make a winning trade. Not everyone has the discipline to get out of losing trades. Self-sufficient traders know the importance of cutting their losses. | I'm Still Holding… What Should I Do? Are you currently holding and hoping? Here's my advice: cut your losses. Preserve whatever capital you have left. Failing to sell now could cost you the entire value of the position. If you're down 10, 20 or even 50% that's better than being down 100%. My take is this — sell whatever you have, at whatever price you can get. Hold on to what you still have rather than holding and hoping. Having a hard time? Wait until the market closes. Review your account. Then, with a level head, make the decision to sell the position and execute ASAP. |
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| | | When I was in my early 20's, I found something in the market. Then I found it again. And again, and again, and again. After exploiting it over and over for weeks and months on end… it eventually led to a six-figure and then seven-figure income. | | |
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If you want to be in this game for the long haul, you need to be comfortable taking losses. If you're not ready to take losses, you're not ready to be trading. Condition yourself. Trade small, and make sure the amount you're willing to lose if you stop gets hit is bearable — 1% of your account, max. You need to keep taking small losses until it becomes second nature. Being a self-sufficient trader is tough. Don't make it harder on yourself … train yourself to take losses gracefully. | Bag holding isn't just mentally challenging … It can be devastating to your account. Holding on to losses can blind you to new opportunities. Don't do that to yourself! Trading based on a solid plan and keeping your losses small is one of the most difficult things for new traders to overcome. But you've gotta do it. Use the techniques I've reviewed with you today — keep your load light. Great trading isn't about being right — it's about making good decisions and following your trading plan. Any trade can go against you. Don't let a small misstep turn into an account blow-up. Let go of that baggage, Paul Scolardi Editor, Swing Trade Millionaires | P.S. Tim Sykes is known for being able to turn regular people into millionaires. He's had 6 students cross that mark so far, and more are on the way. It's his passion. And he's one of the most sought after teachers when it comes to trading because of this. If you're willing to work hard… And do whatever it takes to be successful… You need to take his challenge. If you think you have what it takes… Click here to see more | | *Results not typical. Paul Scolardi teaches skills others have used to make money. Most who receive free or paid content will make little or no money. Most traders lose money. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable. You understand and agree you will consider the important risk factors in deciding to purchase any of our products or services. Past performance in the market is not indicative of future results. | This is for information purposes only as Millionaire Media, LLC is not registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. We are not a licensed investment professional, and we do not give investment advice. Always consult a licensed investment professional when seeking investment advice. Millionaire Media, LLC cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media, LLC in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media, LLC accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns. | | |
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