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Up $4,000. What Should He Do?

Thanks to a comment from YouTube, we have a great real life example of how when you don’t know what you don’t know, it’s hard to know what to do is certain situations. While this is only a small example, it does a fantastic job of illustrating a much broader concept that many traders are part of (without even knowing it).

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Transcript:

When you don't know what you don't know,well, you could end up like this person.Now, before we get to this commentthat I had on a YouTube video,I wanna hit upfront if you say, oh Clay,I knew you're referring to in that video.Just understand, I'm not talking about this specifically.I'm using this as a micro-exampleof a much general rule or a much general concept.One of those, where maybe you've heard me say beforeor heard someplace else, but one of the thingsthat makes trading very difficult isof course you have a limited resource knownas you have cash and that cash is limited.But with that limited resource,when you don't know what you don't knowyou can get yourself in trouble.Or in this case, you're gonna lose out on potential.But again, like I said, what I talked about earlier,well Clay, I already knew you could do that,that doesn't mean that there's other thingsout there that you're not aware of.So keep in mind, I'm talking about a general principle.So with that being said let's get to this YouTube commentand maybe you'll see where I'm heading with this.But again, just because you may know that areaand if you're a newer trader realizeI'm talking generally speaking."I should've sold yesterday, I had a profit of $4,000."Now, only $1,300, still holding."No idea what to do, part of me wants"to hold possibly 'til next year."Let's walk through this, and if you have no ideawhat the problem here is then yeah, that may be a signthat you fit perfectly into this.But regardless, you have Mr. Question Mark,'cause he's confused right?And I'm not looking down on this,I'm just saying that I want to help this person out,I wanna help you out, but they're clearly confusedand I admire then for just flat out sayingI don't know what to do.But at one point they had $4,000 profit in a positionand now as we've learned it's dropped downand is only worth $1,300.I mean, that's no small chunk of change.So I mean, it's not like thisis a train wreck or anything like that.But what this person had no idea that they could doand in fact, this is one of the first videos I ever didand it's one of the most popular,but it's called buy or hold or something like that,or sell or hold, I don't rememberbut I'll put a link down below if you wanna check that out.However, I'm gonna talk about that very same concept hereso you may not wanna watch it.But what they could have done and what they're not aware of,which makes a lot of sense because when people say sell,oh you're gonna sell, what do you think?Be honest, if I say sell,are you thinking of your entire position?Are you thinking in the sense of,okay, now you're done with the trade,now you're done with the investment because you've sold?If so, there you go, that was one of those thingswhere you don't know what you don't know.That is totally false.There is such a thing out there known as, is this even?Yeah.Can you see that, Nate?Okay.Partial, so partial sell.The big word here being partial.And assign some numbers to this,and I don't know if these are the real numbers,but let's just say he had 500 shares.When it was up at $4,000 profit he could have said,wow, that's kind of a lot.He could have went and sold, in his mind, I'm gonna sell.But again most people, especially new people,when they hear sell they think you sell all 500.No, you could always have done a partial sell.And let's just say he sold half, so he sold 250.Well now when the prices come back down,sure, kind of a buzzkill.Ah, I should have, right?I should have sold all 500,but at least he sold some of them up therebecause what's the flip side?The flip side is maybe the price keeps going upand up and up and he could've been saying,ah, I shouldn't have sold.I should've just held onto all 500.But at least he still has 250 for the move up, right?Because you don't know, hindsight is always gonna make youlook like an idiot one way or the other,but when he was at 4,000 he definitely should have soldand done a partial sell.So, he still has 250 shares so at this point,yeah, it's not as much but at least he did still lock insome gains up here when it was at $4,000.But when you don't know what you don't knowhe clearly was not aware that that was a choicefor him to have done at that time.And I don't blame him, I was the same way.When I got into the market if someone would've said,so you gonna sell?I would have automatically thought,well, do I wanna sell everything?No.But now, if someone says are you gonna sell?I don't know, I might consider taking some off the table.Taking some off the table is just kindof the cool kid way to say a partial sale.But when you're brand new you're not gonna think about that,your mind pretty much defaults to what youeither buy all in, or you sell all out.But there are other things out thereand this person was not aware of it,and now, I mean, they're still sitting in a good spotbut it's one of those things wherethis person should not be trading.It's very clear that this personis running around with a lot of randomness,running around unaware of just basic things.Because this is not complicated, this is pretty basic.Again, just because you say, I get that, Clay,doesn't mean you're off scot-free.My point still, especially if you're new,I bet there's still lots of things out therethat you don't know aboutthat could be making your life easier,that could be making your life more efficient,that could just be making you more money,or just making losses not as big as what they may be.And I feel pretty confident giventhat I've been working with and helping people now for,I don't know, going on five or six years at the timeof this recording of the video.But, keep that in mind, this person did not knowabout a very basic concept.So, my kind of question or challenge for youis I wonder how many basic conceptsthat you just don't know about.And I don't blame you for not knowing,because it goes back to the well,when you don't know you don't know.And this is one of those things where they didn't knowabout partial sales and the ability to do thatand it ended up coming up and biting them pretty big.But again, I'm just glad to hearthat this person was still up $1,300.Hopefully they've since locked in those gains,but I don't know what they have done.When I saw it I thought, okay,this is actually a great example of somebodythat shouldn't be trading because they're just not awareof a very basic thing out therebut from a trade management perspective is quite powerful.So, just be honest with yourself.I know maybe it's not what you wanna tell yourself,but yeah, maybe I shouldn't quite be trading right now.Maybe I do need to invest in some educationor just slow things down.That's up for you to decide,but this happens all the time out there.And yeah, I get it, this is just one micro-examplein terms of partial sales but there's lotsof other areas out there where new traders,they just have no idea anything about.If you're out there trading alone currentlyand maybe are in the market lookingfor a community to join to assist you in your trading,or to just help you, give you another set of eyeballs,then I do have a private trading communitywhere you can trade alongside meand other experienced traders.So what you see popping up on the screen right nowis both an information link, so if you clickon the Inner Circle one, that is going to take youto the page where I explain all the detailsof what exactly come with the community,both the chatroom and the newsletter.And then the other image that is popped upis a behind-the-scenes tour where you can see exactlywhat is going to be contained within the community.I take you through, like I said, a behind-the-scenes tourof everything and that way you'll know preciselywhat you are getting when you join.So, definitely check that stuff outif you are interested and thinkingabout wanting to join a community,and let me know if you have any questions.

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