Saturday, April 24, 2010

Well traded Sir!

Well dear readers, as I am sure you already know I am pretty hard on myself when I make trading mistakes and blog about my mistakes at great length here. And when I do trade well, I attribute the victories to the benevolent nature of the Stock Gods. Why I do this is pretty simple. In trading, and actually in life in general, it is very important to learn from the mistakes one makes and at the same time, stay humble during times of success. Just to digress a little, if you can say that you have never made a mistake in life or if you have made very few mistakes in life, I feel sorry for you Sir. The only explanation for no mistakes or very few mistakes is that you forever lived your life in your comfort zone. You never challenged yourself and never really tried to stretch yourself beyond your limits. As a result, you never made many mistakes. And if you didn't make the mistakes, you never realized what you are really capable of. And that my dear readers, is a sad way to live.

Now back to trading. The losses I suffered last Friday made me realize that while the losing trades and mistakes were pretty well documented in the blog, the trades where I did well hardly got a mention. Now as you know dear readers, confidence plays a big role in trading. At times when the confidence is on the decline, it would be nice to go back to trades where you did well and see what you were doing right then and as a natural extension, what you are doing wrong now. Learning from mistakes is still the key but learning from success is also important. With this being the aim, I am hereby starting a new section in the blog - Well traded Sir!

This is going to be a section on trades where I think I did everything right. These trades may or may not be successful in terms of profits, but it is important not to classify a trade as good or bad purely on the basis of the profit/loss associated with it. Trading is not about making or losing money but about doing the right thing. Do that and the money will follow. In that spirit, Well traded Sir!

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