When the market starts rising, the easiest illusion to fall for is thinking you’re making money because your judgment was right.

The real test often comes after you buy:

If the price rises, can you take profits according to plan?
If it falls, can you admit you were wrong?
If it moves sideways for a few days, will boredom make you place reckless trades?

These days, I’d rather think one thing through first: If this trade loses money, how much can I afford to lose? If I can’t figure that out, I don’t place the trade.

You can miss an opportunity, but don’t gamble your principal out of frustration.

Which step are you most likely to crack at: chasing a rally, holding on to a losing position, or selling too soon?
$NVDAB