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Chapter 14. Jesse's secret > Those who can be right and sit tight

Those who can be right and sit tight

At times, I've had clients make big scores in the markets we trade. I've been fortunate enough to do the same at times, but I admit not as often as I could have or should have. When I go back and look at my “Purchase and Sale” statements from the clearinghouse, I generally see the same pattern for the “'best of the best” trades. I see a position entered into when it was not the popular play. I see a position held for a greater period of time than most, held through major shakeouts or sharp short covering rallies. These were generally pyramided but not always the largest positions in terms of size. Substantial money can be made with a fairly modest position, if the position is entered relatively early in a major move and held for a good portion of that move.

To achieve ultimate success, you are required to resist your human weaknesses. Human nature provokes us to take premature profits, because it's pleasurable. The major moves, the ones you want to maximize, are those that are the hardest to endure. Your technical tools can help here. Consider using moving averages (which I personally believe are the best technical tool); however, any tool that helps you determine the trend and maximize profits in a systematic manner is better than thinking too much or too emotionally. Technical tools can provide you with the discipline to stay with moves you otherwise would cash in on prematurely. These big moves are always out there and always will be, but most of us never see the forest for the trees.


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