In the previous post, you can read again here: Strategies to Get Out of Stuck Stocks, I will explain to you, strategies that you can do so that you can sell your stuck shares. It means, in that post, your shares have been stuck and you have to take repressive action.
In this post, I will give you a few strategies so you can avoid stuck stocks. So in this post we will take preventive measures so that your stock portfolio doesn't fall apart. Here are some strategies you can do so you can avoid stuck stocks:
1. If you want to buy stocks with emotional feelings, it's better not to buy stocks.
This usually happens when the stock is on the rise. Many traders are starting to fear missing the train and buying stocks in bulk. If you experience this, it means you are buying stocks with emotional feelings. If that happens, it's a good idea you don't need to trade first.
Feelings of emotion in trading VERY POTENTIAL to cause your stock to get stuck. The most important thing in trading is that you can do a good analysis, not follow your emotions.
2. Prepare a cut loss level, especially for illiquid stocks
So that your stock is not stuck, the most appropriate way to do is: Cut loss. You must really apply the cut loss if you buy stocks that are not or less liquid, such as third-tier stocks. There's nothing wrong with buying a third-tier stock, but prepare your cut loss level.
Most of the traders I've consulted about “sticky stocks”, most of them have stakes in third-tier stocks. Therefore, to anticipate it, you must dare to cut loss. If you want your cut loss to be smaller, avoid playing in third-tier stocks if you don't feel like an expert.
3. Avoid buying stocks that have gone up high
This is what has the potential to cause a trader's stock to get stuck. Stocks that have gone up high and then you are too late to buy the shares, then you don't have to chase them.
Then you protest: "So what if you go up again, Mr. Heze?"
"That's if it goes up.. But if it goes down again?"
The problem is that you and I will not know whether the stock price that has gone up high will rise again or will be corrected again. In many cases, stocks that have gone up high when the JCI is bullish, have the potential for a large correction in a short time. Instead of buying at the high price, wouldn't it be better if you want to be patient a little while waiting to buy at the lower price / support?
Like the concept of technical analysis: No stock price goes up without going down at all. In the stock market, one missed opportunity doesn't mean tomorrow you won't have another opportunity. As long as the stock market is running, you have the same opportunities and opportunities as other stock players to make profits and don't need to rush in making trading decisions.
Those are some ways to avoid your stock from 'status' stuck... Now is the time for you to practice it.
