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When the stock trend is not as good as we expected, we should empty our positions, keep the cash and wait for the profitable chances

Feb 24, 2024 By Edward Weston

If I lose more than 10% on a deal, I'll empty my holdings immediately. I never make excuses for myself. The fact that stock price has fallen is enough to justify my action. I will also give up holding positions according to my intuition. It's actually not intuition. It should be my sub-consciousness that I accumulated by years of operation in the market. When I buy a stock, I have a set of opinions about its future performance. If it doesn't follow the predetermined script or doesn't go up immediately, I usually sell it without looking back. When I buy it, I expect it to make a great performance. The fact that it doesn't meet the expectation is a solid proof, which is enough to make me empty my holdings.

Avoid the weak, keep the strong. Stay away from the stocks that can’t have good performance for a long time, you can only make profit by investing your money on the leading stocks

In the late half of my life, I developed a set of operational theory focusing on the timing of stock trading. By moving fast to avoid the stocks being stranded for a long time, the capital is also activated. It's like a grocer who has a kind of unsalable items on the shelf all the time. A wise boss will clear out the goods, and then use the money to compensate for the goods that can be sold, the goods very popular in the market. It is the same for the stock market. Invest money in the leading stocks with liquidity. Timing is a really important factor in the operation of the stock market.

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