The Consequence of Deviating from Your Trading/Investing Plan
Updated: 2019-08-28T10:53:38Z
minute read

If you’ve been following the stock market news then you already know that on August 19, 2019 Kepwealth Property Phils. Inc (KPPI) had been listed in the PSE and started trading.

Investors both big and small, entered on this opportunity to ride the momentum of price growth. I was one of the many players who took advantage of this new listed company. The strategy I used for this is purely trading, I picked an entry price and bail out once it hit my target price. I repeated this strategy several times a day (slowly increasing the # of shares bought) and was earning good money from it.

However, on the afternoon of August 23, 2019, I entered a position haphazardly and practically deviated from my established trading plan. To put it bluntly, Greed took over my logical decisions and was blinded of the gain that I will be able to accumulate. As we know it, it didn’t turned out that way… the stock drops from 27.35 to 13.02 and closed at 15, giving me a losing position of 49%!

I exited from that position of course but 49% loss is not a cup of tea for everyone. It is our hard-earned money after all and giving it away is painful to do. But that was my tuition fee for another lesson learned in the Stock Market.

Moral of the story, sooner or later you will fail to follow your plan and by the time you recognize it, the price is always expensive. I am not advocating that you should not make mistakes because it will cause you to not try, I am saying to prepare yourself when situation gets rough.

“Prepare for the worst and you can expect the best”

- Your Life In Perspective by Ælfræd "Elf Counsel"
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