Hey friend,
Here’s how markets have been moving.
The Daily Direction
Note: Stocks ended higher as the market digested a “higher-for-longer” narrative. Several index directions flipped back upward – but not by much.
The Daily Nugget
Don’t add to a losing position.
On the surface, this seems obvious. If a position is already losing – why would you keep adding to it?
Many do this because they have a longer time horizon and maintain a bullish view on the asset. They want to “take advantage” of the lower price.
But in many cases, this is a purely emotional response. They’re too emotionally attached to the trade and cannot accept that it was a bad one. Hence, adding to it is just a way of convincing themselves that the initial trade was the right move.
As a general rule of thumb, traders should never add to a losing position. As Ross Givens says, with so many potential winners out there, why bother doubling down on a loser?
And if you want to get access to Ross’ system for spotting one potential winner after another – no matter what the market is doing – be sure to watch this.
The Traders Agency Team
P.S. If you want special trade prospects and potential market moves from Ross sent directly to your phone – so you don’t miss out on anything – just text the word ross to 74121.
