How to Cut Your Losses

80, 90% of this has to do with psychology. The number one reason why you don't want to sell it is, well, what if I sell it and it goes higher? That's what people worry about. This is where your entry point can make a big difference. If you're buying something that's well extended above its 10 week moving average line, you could have a pretty rude awakening if it comes all the way back down to that 50 day moving average line or 10 week movingaverage line undercuts it. And for some of the newer traders, study charts in Neil O'Neill's book How to Make Money and Stocks Fourth Edition. It's one of the greatest