Here’s the scene: You’ve ridden a stock down from $30 per share to $20 (a problem in and of itself), and promise yourself that you’ll sell it if it ever goes back up to what you paid for it. Lo and behold, the shares start to rally, first to $23, then past $25. And the recovery doesn’t end there. The shares continue to rebound, sailing past $27 and then reaching $29.50. You’re pumped, excited beyond belief—and you’re still losing money! Nothing can stop those shares now. You call your broker or go online, excitedly giving instructions to sell your shares at $30 per share. You begin thinking how you’ll spend the money or start searching for another candidate to purchase. You feel great. Everything seems to be going your way. That order is as good as executed. But wait.
