Prof. Tyler yamazaki

Do not Hold On to the Stocks for Too Long
It is worth noting that not all investors lose their money for picking the
wrong stocks. Some lose their money because they pick the right stocks but
hold on to them for too long. Do not underestimate the volatility of the
stock market. Make sure to sell your stocks before their price drops. Take
your profit while you still can.
 
Understand Volatility
You should have a right understanding of what volatility is. Many people
think of volatility as something where the prices of stocks simply rise and
fall almost randomly. They often think that after a big rise, then a massive
fall can be expected, and vice versa. However, this is not always the case. If
it were so, then volatility would be something that is easy to predict. The
volatility of the stock market is influenced by various forces. This means
that even after a massive drop in the prices of stocks, it is still possible that
another drop will take place. This also means that the result of a particular
trade is independent of past trades or transactions. Unfortunately, some
people think that since their last three investments did not work out, then it

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is most probably that the next trade will end up with a favorable outcome as
long as they use the same strategy. However, this is wrong. In fact, there is a
good chance that the subsequent trade or investment will also be a loss. The
reason lies in the strategy that you are using. If the strategy keeps on losing,
then it is a sign that you should change or at least modify your strategy.
True professional investors do not rely on mere luck. They know that if they
come up with a true winning strategy, then the chances of raking in some
profits would be high. Take note that even if you have a good strategy, there
is still a chance that you may lose an investment. After all, there is no
strategy that can guarantee 100% the return of positive profits. But, with
consistent research, hard work, and practice, you can tilt a favorable
outcome to your side and establish a winning edge over the stock market.