Lessons from Small-Cap Pump-and-Dumps That Hurt Us A Lot

Have you ever seen a small-cap stock run hard and couldn't resist chasing it? The moment you jump in, it's like an initiation rite. The price plummets without warning. What's worse is sometimes we have a stop-loss, but then we move it, thinking it will bounce back. In the end, it's a mess as usual. Moving the stop-loss is the poison that destroys our trading discipline. I remember $ABC (hypothetical name) a couple of years ago was a very expensive lesson. It made me understand how important it is to stick to the plan and never try to negotiate with the market. It's really not worth it.