This mistake is all about timing and when you get into the trade – you are right but you still end up losing.
A Scenario to Avoid
- Stocks (usually penny stocks) that have a supernova spike
- It is spiking incredibly high, but you enter short
- You’re looking for the decline to happen right away, but it keeps increasing
- You were right that it would decline, but it happened later than you expected so you take a loss
- Even though you were right, you still lose because your timing was off