Stock Trading Expert Tutorial About The Danger Of A Winning Streak

Stock Trading Expert Tutorial About The Danger Of A Winning Streak

I just hit a 20% gain for the month of March.

When compared, the S&P 500 was flat, it actually closed down 0.09% for the month of March.

And when you figure in capital gains taxes, I really lost money during the month.

For you Schiff head Ron Paul gold pests out there, here are the numbers. In the month of March, gold is up 0.49%, silver is up 9.5% that means we've outperformed gold and silver combined by over 100% just in the month of March. When you go back half a year, then I've out performed gold and silver by almost 700%. That is just the facts and checking out the numbers. Inflation certainly isn't so bad that it is cutting into my stock trading profits, in truth, I've played inflation in the energy sector for profit and so I'm really making money off inflation. As for the declining dollar, exports continue to rise which supports growth in the manufacturing sector here in the U.S. Remember that the U.S. Guess who the world's top manufacturing country is? The U.S. The unemployment rate is slowly decreasing as a cheaper dollar helps exports and causes more hiring in great manufacturing jobs here in the United States. Moreover, the cheap dollar indicates low interest rates which is pro-growth. Last but not least, I'm not taxed at 40% capital gains tax like a few of these crazy nut job gold bugs declare. My capital gains tax is quite small coming in around half that or 20%. The Obama administration has reduced taxes even more than George Bush on many things and so my tax liabilities are the lowest they've been in a long time.

However you know what folks, there's a wise old biblical scripture which says after an conceited and puffed up mood comes the big fall.

What comes to mind is a video clip that went viral with more than 171,000 views in 2 weeks of a guy who just won a laptop. He was much too excited and he falls immediately after picking it up which smashes it into pieces.

I've seen this happen to many experienced traders. They get all thrilled when they reach three or more winners consecutively and they believe they got trading all figured out and then pow, then wind up right on their back.

You should be getting more fearful whenever you hit numerous winning trades in a row because you have in mind the chances are higher now that you will have a loser.

It really is okay to get good and happy when you finally close out a winning trade as long as you knock yourself back down to earth before shopping for and entering the next trade. Should you be so pleased that you find it difficult to control yourself, then it's preferable to sit out in cash while you get your emotions back in check.

For additional educational trading lessons have a look at these three terrific resources:

How Opening Range Breakout System Will Make You Wealthy

Trading Lesson - Will You Be A Dumb Dog Stock Trader

Trend Trading For A Living

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