Today I took partial profits on some of the cannabis positions I own after they gapped up and sold off. The gap up / sell off may be a warning sign, or it might be just intraday volatility. But the larger point is that most people position size too large when they trade the market, and when the market does have a periodic selloff they are forced to sell. I have found that for my longer term trades using Stage Analysis my position size needs to be smaller to be less impacted by volatility. I can take partial profits into strength to capture some short term gains yet also hold core positions for the longer term. A lot of less experienced traders tend to do the opposite, they get heavily exposed to a market after it has gone up a lot and then become a victim of a selloff.
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