A Veteran Trader Took One Of The Worst Losses Of His Career Monday. Here's What He Learned.
Allergan plc Ordinary Shares (NYSE: AGN) traded down sharply on Tuesday following Monday's news that the Department of Treasury will be looking into tax inversion deals.
PreMarket Prep co-host Dennis Dick detailed on Tuesday's show how he got left holding the bag when the news broke Monday night.
Dick, a 17-year trader, outlined the three mistakes he made in taking the biggest points loss of his career, and how you can protect yourself in the future.
His three mistakes:
1) Trying to work out of a small loss instead of taking a bigger initial loss. "I could have lost three or four points initially and bit out and been ok," he said.
2) The mindset of "The market's wrong, I'm right."
3) Lack of risk management. "I threw everything out the window. There's a lot of things to learn from my mistakes on this trade."
Listen to audio of the clip below.
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