Learn to Walk Away

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. 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 at market and walk away and don't look at the quotes once the stock is sold.

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