Tuesday, July 03, 2012

Gulf Keystone Petroleum (again)

An update on this particular stock, and this is a great example of showing how you must heed the signals and exit your positions when the stop levels are hit. If you don't, then your hard earned profits, which could have taken several weeks to accumulate, can easily disappear in a couple of days.

Trends can take off for no apparent reason, and can easily end in a similar fashion. The only things you can control are your exposure (risk) should the trade be a losing one when you open the position, and the resolve to act on your exit signals when the time comes. Other than that, all you do is wait and see if the potential trend develops.

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