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Review your portfolio and get rid of junk

When I realized recently how much I was ignoring my trading rules I used those last couple days working on getting back on track. I learned again, how important it is to have rules and follow them no matter what. Of course, you still can be working on improving or modifying those rules to fit your trading style, but you should stick to them. Otherwise you soon start buying junk and losing money.

Today, I reviewed my portfolio to check, how many stocks fit into my stock selection rules and I found that LJ International (JADE) and Netezza (NZ) do not fit. If you ask me why I bought those stocks, I do not have an answer. I just had a feeling. But feelings will lose you money. Both stocks didn’t surprise with earnings, both stocks have negative sales growth ratio, none make new 52-W highs, JADE doesn’t even have minimum required trading volume and it trades below $5 (another wishful thinking about getting rich quick).

I decided to give those stocks a chance. However, I moved my stop loss order tight to the price for both stocks. If they won’t go up only, they will be sold.





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