Every Trade Is a New Opportunity
Many people hesitate to buy a stock again after having a bad experience with it, which is very common. For example, if you bought a stock like Garden Reach Shipyard, saw it rise, but later watched it fall and sold at a small loss, you might avoid that stock in the future.
However, this mindset can be harmful. Each trade is separate and unrelated to past experiences.
Stocks Don’t Have Memory
A stock doesn’t know who bought it, at what price, or who sold it. It does not care about your past trades, and you shouldn’t let previous experiences weigh you down. If a stock now meets your entry conditions again, it deserves a fresh evaluation.
Don’t Miss the Big Wins
Consider this: if you incur small losses of 1-2% in five different trades, but then execute one trade that returns 3x your investment, that single winning trade can cover all your losses and yield a significant profit. By dwelling on past losses and avoiding certain stocks, you might miss out on substantial gains.
Trade With a Fresh Perspective
The best approach is to treat each trade as a new opportunity. Forget what happened in the past. If your entry criteria indicate that a trade looks promising today, proceed with it. Let your system or process guide you, rather than your emotions or memories.
What Matters Is the Present
What is most important is that the trade you are considering now meets your conditions. Past wins or losses with the same stock are irrelevant. Focus on the stock chart and your entry logic to make informed decisions. This way, you can remain focused and open to genuine opportunities.
Have you ever missed a winning trade due to a negative past experience with the stock? Share your thoughts in the comments! If you found this helpful, please SHARE it with your friends who trade
WeekendInvesting launches – The Momentum Podcast
This episode of The Momentum Podcast unpacks 15 years of investing experience!
We cover:
✅ Early investing mistakes and learnings
✅ Navigating market fluctuations (including the 2020 crash)
✅ The transition from direct stock picking to managed funds
✅ The role of momentum investing in long-term strategy
✅ Key takeaways for building a resilient investment portfolio.
Whether you’re new to investing or looking to refine your approach, this episode is packed with practical advice!
