This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

I Always Double Down on 11

NEW YORK (TheStreet) -- Traders often say "you're only as good as your last trade," but don't believe it. It's a lie. You won't get any arguments from me that your last trade may emotionally bring euphoria or disappointment. The truth is, it's your overall average return from your first investment until today that determines the amount you deposit in the bank.

We can take it one step further and say it's a mistake to allow a trade or investment to affect you emotionally. OK, yes, I know that's easier said than done, but every wise speculator knows that emotion is kryptonite to a portfolio. The easiest way I know to reduce or eliminate emotion and worry is to reduce the position size.

Occasionally I'm reminded that sometimes it's not your last trade (or, in the case of financial articles, your last idea), that determines how proficient you are; it's your worst trade or idea. My latest Herbalife (HLF - Get Report) article drew fire because apparently it wasn't bullish enough for at least one reader. Here's my reply:

"DrunkStepmother" makes a point that I became a Tesla (TSLA) bear under $100 while shares continued higher and peaked at $194. On one level, her thinking isn't all that uncommon. People buy at the top and sell at the bottom all the time. You don't want to be a Drunk Stepmother, and I'll explain why.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
HLF $45.37 0.00%
AAPL $127.60 0.00%
FB $83.09 0.00%
GOOG $535.38 0.00%
TSLA $205.27 0.00%

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs