Avoid Popular Stocks

I normally avoid stocks that the "herd" of retail traders tend to flock to. Yes, it means I miss out on huge rallies, but it also means I avoid huge crashes or volatility. If I do hold popular stocks, I put a trail stop so I don't lose too much when it crashes. I make sure the trail stop is wide enough to accommodate the stock's day-to-day volatility.

Since most Philippine trading platforms don't have a trailing stop feature, all the more you should avoid popular stocks.

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