Nicole: Take a look at your performance and you tell me what you need to do in order to better your performance?
It is the same problem that all traders have, or at least most. Trading isn't about gains as much as it is about losses. Capital prservation is much more important than capital appreciation. Think about this way. You can take as many gains out of trading as you want, and nothing necessarily changes, but, take a significant loss and you may be unable to continue trading. You must live to trade another day. This is not the market for "hopes and dreams" trading.
When an issue turns against you, unless your are 99% sure that it is about to come back, you MUST cut it and move on. I did not want to cut NETA after losing 5 points ..... that was a sizable loss, but when it did not come back like I expected, I HAD to sell ..... had I not, I would have lost another 6 points.
Think about this way again, if you make an assessment on a stock and it turns out to be wrong ..... don't attempt to make another assessment as it has already proven you wrong once.
It is a very difficult thing to do, I know. But it is something that every trader MUST learn to be successful. Do NOT get stuck in an issue. The worst part about it is that when you finally get this strategy down, it will backfire on you ..... you must expect this. There will be a case when you sell for a 5 point loss and then the issue comes back 7 points. Don't let this fool you into changing your strategy.
Good luck
Tj |
