The importance of stop loss

RSI indicators on most stocks show the buy signal.

I am not buying for 2 reasons.

1. There is a second wave of covid 19 but the prices are still above the price of the first wave. It should be lower.

2. My capital is spent.

Lessons learned.

- Sell when sell target is hit. Do not let profits run.    
- Cut losses when stop loss target is hit. So I can have the capital to trade. 

What to do now?

- Hold. Wait till the covid 19 vaccine is ready. The markets will jump up. My investments will boom. That is reported to happen next year.

Adrian's Journal
The rookie trader-investor

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