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Pastimes : Rules We Can Learn From
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To: Mike McFarland who wrote (47)4/26/1998 3:33:00 PM
From: yard_man  Read Replies (1) of 109
 
Most of your ideas strike me as particularly good except one of them:

>>4. If a loss in something starts bugging you, pay for
it with a gain in something else, nothing wrong with
being even.

1. Don't pay for a loser with your winners -- Instead, cut losses and let winners run. (The idea above (4) will kill you on options. I know -- it's the reason that I was flat last year, only ekeing out some gains from interest bearing accounts.)

My biggest mistakes have been taking profits that are two small on winning ideas while hanging on to losers. (It's hard to learn -- I did it again lost week -- argh!!)

2. To avoid the above concentrate on overall performance and not each individual position.

3. More important than the above is have definite entry and exit points. No matter how good an idea is you've got to have a point at which you admit it hasn't worked. OTOH -- You have to take your profit sometime for there to be a gain.

Good luck
Barry

BTW Nice idea for the thread
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