Over the weekend, I heard from a trader who was midway through a cross-country move of 2400 miles. Some 2000 miles into the trip, a wheel flew off his trailer while driving 75mph on a rural highway. With the trailer skidding and the possibility of losing control of the vehicle (and his life), he was able to pull over and stop without harm.
After being towed to the nearest mechanic, he was told the rear axle was made entirely of poorly-welded pipe(!), that it was a miracle he made it 100 miles, much less 2000.
This trader told me the following:
In my excitement to move, after purchasing this trailer 2 weeks ago I didn’t go through the proper checklist, I didn’t have a buyers inspection performed as I would if I’d bought a used vehicle etc. And holy moly did it bite me. Much the same way I’ve remember back in the day having bought into a stock or two as I’m just finding it for the first time right as it’s breaking through some big resistance, without doing the proper “buyers inspection” checking when earnings are and news and everything else, and it can end up biting pretty hard too.
What a great point!
As you trade today, be sure you have a checklist you’re utilizing for entries and exits, and once you do, follow it. It’s likely to prevent you some serious pain!
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