CUT LOSS is the most important and essential part of trading. It is all about planning and executing our plans.

So ... stop-losses being placed BEFORE we take a trade ... and once it HIT below our stop-loss level, we have to CUT LOSS ... admit mistakes ... move on to find next good trade.

This is being mentioned and said many of times ... in my e-meeting to my members for the whole year long ... and also I have conducted few CUT LOSS session with those attend.


Imagine that you bought MMSV (for whatever reasons) last week ... now you will be down by more than 10% ... it gapped down yesterday morning ... and closed at support 54cents. HOW do you going to deal with your trade? CUT LOSS?? ... or wait to buy more (average down). As there is no right-wrong, but we still need to deal with it.

It was a mistake to buy last week but we could not tell about the gap-down, right? So ... how do we deal with it? How?

If we are going to ask around in chatrooms or forums, that shows we could not make decisions by ourselves and didnt plan the 'unfortunate' situations. PLAN and EXECUTE is easier said than done. Most of them ... just talk about it.

TekSeng : Below 70cents now

DRBHcom : Below RM1 now

Many more tumbling down ... you can see how they dump stocks ... and trap many retailers up there. Without discipline, 2016 onwards would be painful year ... expect more of that in 2017. Yes, I have used 2014 onwards as training ground ... cut-loss short ... and short-term trading is very difficult.

See you in 2017 ... where as I said, majority of them will be STUCK up there with their HWGB and such ... SUMATEC, IFCA ... or even darling Armada ... when market crashing down, many of these may not be seen anymore.

Good luck ... really, we need that.

TEH