Re: Three ways to lose
Here are some ideas I have about losing.
As I see it, there are only three ways that a person could possibly be losing at trading. Sounds like and over-simplification, I know, but I find that for myself anyway, if I organize the possibilities, I somehow gain a better grasp and control over them. So I busy myself often with mulling over these possibilities, and ways to overcome each one. Each possibility has its own issues and is in itself a frustratingly difficult quandary for many.
1. You are blowing stops, taking occasional huge chunks out of your gains, or worse, your investment capital.
2. You are taking nothing but stops and small gains, spinning your wheels, and slowly decaying your portfolio.
3. You are freezing and doing nothing, in which case the fees are eating you up slowly, and your are wasting precious time.
What is interesting to me, is that two of the three are emotionally related, rather than related to the trading system.
Any thoughts on this ?
- Shawn |
