πππThe trading experience that hurts the most is No.5 - Big Gains on paper but now is Red. A good example that I have experienced this week is the USD 1 trillion memory stock rout that dragged
$Roundhill Memory ETF(DRAM)$ down 16.7% to USD46.45.
I bought at the peak, experienced big gains on paper but now it is red.
The lesson I learnt is when I sit at unrealised gains of 30%, it is a paper illusion. It teaches me the most critical discipline in wealth building:
The stock market does not pay you for being right. It only pays when you hit sell.
The reason I got trapped is the toxic belief that a skyrocketing stock will go up forever. When DRAM ETF was flying high at USD 81, I did not lock in gains.
I did not implement a trailing stop loss or a profit taking blueprint.
An unrealised loss is a failure of risk management.
As Paul Tudor Jones said:
"Don't focus on making money, focus on protecting what you have."
@TigerEvents @TigerStars @Tiger_comments
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