Bill Ackman and Herbalife
All traders have losses..however the key is to “try” to keep losses small. Bill Ackman has had one problem after the next. He has the Herbalife debacle as well as JC Penneys. Bill Ackman just announced that he has covered over 40% of his Herbalife short position, which explains the big move higher in Herbalife stock in recent weeks. Herbalife stock price rose from approximately $45 to $70 per share, and from approximately $60 to $70 per share during the month of September alone. Why hold on to a losing position????
One of the most important issues to traders is to maintain a proper risk per trade. Another is do not let losses get out of control. In the case of Bill Ackman, he made a huge bet on Herbalife and did not take the quick small loss. Was it ego or conviction? It does not matter. The fact is, it is hard to dig out of big losses both emotionally and financially.
Do not think there are any gurus. Gurus can lose you money. Gurus might have egos. Build your own trading plan that matches your own personality. Do not risk more than 1% of your account on any trade. Know where the trade does not work and simply exit. No emotions..No being right or wrong. The market is always right
Past performance is not indicative of future performance