Watch out for Trader Jim!
Whatever you do in these volatile markets : Don't get personal with your shares!
Don't fall in love with them or get emotional about them, or to a certain extent even believe in them!
Because right now the market is extremely cold-hearted. I get so many e-mails from people who cling onto shares as they go down further and further and I can tell they're emotionally attached.
Use stops is one answer and remember a lot of the spreadbetting companies will do the work for you and close out your positions at a given price.
Advfn head cheese Clem Chambers has had a new book published called "The Armageddon Trade" - it's a brilliant thriller which I've just finished so well done Clem.
Definitely worth a read and you can click here... to order it from the Advfn bookstore. (He really hasn't sent me any cash for saying that.. you think I'm that easily bought?)
The book's about a brilliant chart reader/trader who discovers looking ahead that the markets are about to go to zero. Yes, every share!
This trade - Jim - is a winner because as well as forecasting price movements he trades shares unemotionally. Jim is obviously based on real traders in the city. He's on the sell side for some of the day and could be on the buy side for the rest of the day. And he's the kind of guy that moves the markets in your shares. He deals in millions.
He doesn't give a flying fig about the company he's trading - all he cares about is moving the millions about making big amounts for a move of a couple of pence.
And what he wants to do is screw with your head, forcing you to sell and buy at the wrong moment.
Remember when you trade, especially short-term, you are up against guys like Jim. And unless you have a trading plan you'll get hammered by him. And if you get emotional he'll hammer you even more.
So set a proper plan for each trade. Work out why you are in it, your timescale and consider stop losses and a target.
If you don't, Jim's gonna get you.