Sunday, April 18, 2010

Trading NOT like a fool Part 3

Let's keep this short and simple dear readers. If you have read the first two parts of this series, you know I traded like a damn amateur on Friday. Bottomline - Shit happens. That's life for you. I made a bunch of stupid mistakes. The important thing is to learn from them. And go on.

My account took a decent hit and I am back where I was at the beginning of this month. That doesn't sound too bad but I was having a great month until Friday. Anyway. Time to get over it.

Here are the problems:
(1) I am low on confidence.
(2) I would be lying if I say I don't have the feeling right now to get my money back from the markets.

(1) can only be corrected with time. No shortcuts there. And (2) is a horrible way to trade. One is sure to lose money with these kind of emotions.

(1) Trade small
(2) Trade less

And I am going to do the above till I get my confidence back. I had got all those profits by some smart trading. I was the one who lost them by stupid trading. Time to get smart again.

Wish me luck dear readers!


SteelerTrader78 said...

Good Luck Positions Trader- You will bounce back- Take it slow and steady and wait for your pitch. A few good trades and your confidence will be right back where it was.

Your article hits home w/ me since I have been there many times. Do your best to let it go and not bring Friday's trades into the trading desk this week. Start fresh my friend. Cheers bro!

positiontrader said...

Thanks S.T.! Appreciate the support and the encouraging words.

TA said...

I really enjoyed your 3 part post. Like all I learn the most from mistakes of myself and others than anything else.

I would add to this post a
(c) not trade for a few days

Especially right now where the market's direction is up in the air.

positiontrader said...

Thanks for the suggestion TA. I am going to listen to it unless an opportunity that's too good to pass up presents itself. The fact that I dont have any day trades till Wednesday makes it all the more necessary to take it slow.

And am glad you enjoyed the posts. I admit I didn't particularly enjoy writing them :). And it takes a wise man to learn from someone else's mistakes....Cheers!

fortune8 said...

You are not alone because it happens to all of us.

positiontrader said...

Thanks for the support fortune. It's just that I thought I was past all these kind of mistakes. Shows how much I know :)

Is It Possible said...

Good to know that you are back, good to see that you learned your lesson and good to hear that you are ready to move on. But keep those bad days in your books like bookmarks so that you don't forget these lessons. We have made good "effort" to learn them so don't let them vanish from your books, let it be part of your memories.

Don't worry, you will have good days ahead as after every dark night we have a brighter day ahead.

Few tips:
1. Don't trade for a day or two after making 3 bad trades.
2. Never break your rules unless you have reasonable reason to break them with facts.
3. The moment you start to "HOPE" is the alarm to sell your position.
4. If in doubt do nothing.
5. Emotions is your enemy, try and avoid them during trading.
6. Above all don't be too hard on yourself, you should forgive yourself as well especially once you learn the lesson.... once a mistake, twice the coincidence but third time it becomes habit.... so lets not make it a habit...

Good luck trading ahead just be cautious and don't break your rules....

positiontrader said...

Wow ISP! Its hard to imagine someone would take so much time out for a total stranger. I really appreciate it. If our paths ever cross in life, the drinks are on me.

Thanks once again!

TA said...

I second fortune8's comment.

I've been there before as well. It's not fun but you'll be a better trader because of it.