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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: Jim DiFalco who wrote (9142)	2/4/1999 2:37:00 AM
From: Richard Estes	Respond to of 12039

The ability to sell is the best thing to encourage. But we can all learn from looking at our trades for the year. Why did I do that? Why did I buy/sell? Why that stock? was it a good reason? ETC. Then compare the stocks you were in to those that outperformed them. We might find we make the same mistakes on a loss, over and over.

To: Jim DiFalco who wrote (9142)	2/4/1999 10:47:00 AM
From: sean sanders	Read Replies (2) \| Respond to of 12039

Jim, (a lot of reading here, but good IMO) In response to: "Often I find the ability to divorce ones self from your emotions is almost as valuable as having the right system or indicator" I recently read an article here is the section that included emotions "OBSERVATION # 6 Losing traders often fail to acknowledge and control their emotive processes during a trade. Winning traders acknowledge their emotions and then examine the market. If the state of the market has not changed, the emotion is ignored. If the state of the market has changed, the emotion has relevance and the trade is exited. CONCLUSION: If a trader enters or exits a trade based purely on emotion then his market approach is neither practical nor rational. Strangely, much damage can also be done if the trader ignores his emotions. In extreme cases this can cause physical illness due to psychological stress. In addition, valuable subconscious trading skills that the trader possesses but has no conscious awareness of may be lost. It is best to acknowledge each emotion as it is experienced and to view the market at these points to see if the original reasons we took the trade are still present. Further proof that this conclusion may have validity can be seen in even highly systematic traders exiting a trade for no apparent reason, and pegging a profitable move almost to the tick. Commonly, this is referred to as being "lucky" or being "in the zone". also here was another point "OBSERVATION #11 Losing traders often take themselves quite seriously and seldom find humor in market analysis or the trading environment. Successful traders are often the funniest and most imaginative people you will ever meet. They take joy in trading and are the first to laugh or relate a funny story. They take trading seriously, but they are always the first to laugh at themselves. CONCLUSION: Its no wonder that one of the first things psychiatrists test for when treating a patient is whether or not the patient has any sense of humor about his affliction. The more serious the tone of the individual, the more likely that insanity has set in." So I hope those exerps here helpful. I know I wish I could look at trades like that; when I'm riding a put though a bull market <g>. Sean

To: Jim DiFalco who wrote (9142)	2/4/1999 11:06:00 AM
From: sean sanders	Respond to of 12039

Jim, In addition to Richard's comments ... I remember someone saying something or reading it or perhaps I made it up in my head (I don't remember). But the jist of it was is that when one goes to school to learn a profession it takes what ... a long time, many hours of studying, and testing and hard work. And even after that I'm sure you're not an expert in the field. This person likened trading or investing to learning a profession. In that in the long run ,(not talking about 'beginner's luck trades' (someone that was lucky enough to buy AMZN a year ago ie), learning to trade takes just as long as it does to learn a profession. This person was emphisizing the use of paper trading because one will learn either through his own money or fake money. and I'm starting to feel the individual whom thought this up is on 'the money' about that Sean