The "Greed Factor"
Scattered throughout the various posts I have made to this site I have made mention of the "greed factor". The "greed factor" gets most of us in trouble as we as human beings always seem to want more and more no matter what it is that we are consuming.
Any market where money moves quickly through the bowels of a trader's account can be challenging to manage. The key concept to always keep in mind is that being greedy does not create a long lasting wealth building strategy when using the stock market. In fact, poor money management will run you into trouble.
Use intelligent split ratios, diversification, and time to spread your risk. Take what the market gives you and learn to exit without hesitation should a profit reveal itself in a fast moving market.
Yesterday in the company's account one stock within the developing block moved well over 23 points. This translated into a profit for the entire block in the range of 9-10%. In my next post I will show the spreadsheet to help you understand better the blocking method for trading that we employ to secure consistent profit. The most important thing to recognize is the importance of taking a consistent and conservative gain while disciplining yourself to be happy with what the market has yielded for the day and move on.
Tomorrow is another day and more profit is on it's way!
