Page 27 - DIY Investor Magazine - Issue 23

‘I SHOULD SAY, I NO LONGER SUFFER CATASTROPHIC LOSSES, BECAUSE THERE WERE SOME ALL MIGHTY COCK UPS WHEN I FIRST STARTED’
You could say ‘why sell and then re-buy, surely you suffer slippage on the trades which will reduce your total profit?’
I do suffer some slippage and with hindsight it would have been better to have hung on in this example, but never forget we don’t know how high or how low prices are going to go and protecting the downside is vital.
It’s a balance between not throwing inherently good trades away at the first hint of trouble and not throwing large amounts of money away when it actually becomes serious when prices really tank.
Do I always come out on top and make money this way? Nah of course I don’t, sometimes I lose, but what I don’t do is suffer catastrophic losses and blow my account up.
I should say I no longer suffer catastrophic losses, because there were some all mighty cock ups when I first started.
If you would like to know more detail about my thoughts on market declines, BEAR MARKETS and loads of other topics, ideas and strategies then perhaps you might
like to take up our absolutely no catch, no small print,
no nonsense 30 day free trial offer of full access to our website.
If you would, please just go to https://www. thenimbletrader.co.uk and follow the process.
27 DIY Investor Magazine | Oct 2019