Traders Must Remain Mobile

Avoid putting down roots. They impede motion. Don't fall in love with stocks or sectors. If it's not working, dump it. Move on to something that is working. Once you become too attached to a position, you ignore more profitable opportunities. You cease to be a speculator and become part of the dead money crowd. That's ok if you're time horizon is long, your patience is high, your research is good, and you like owning stocks for the long-term. However, if you're a trader, you can't allow trades to turn into investments no matter what your ego encourages you to do. This is especially true when trades turn against you and you find yourself looking for reasons to justify holding a loser.