Richard,
I agree entirely with that. Learning when to cover a long or short position is, quite possibly, one of the more perilously overlooked topics in the trading profession. I know a lot of people who consistently - and I also, from time to time - throw the big fish back (or exchange the 'big fish' for a 'minnow') by waiting too long, or not seeing the signs, that it's time to close out.
"Don't fall in love with anything that doesn't love you back," is one of my favorite old desk witticisms. Also, when they do get away from you, recall that bad trades aren't wine, so don't count on them getting better with age. And finally, something I heard someone else on this thread say at one time, and that rings so very true in my mind (to paraphrase): losers analyze their winning trades, and winners analyze their losing trades. Good stuff -
LPS5 |
