Thursday, October 12, 2006

My best teacher

I've been making a habit of looking closely at all my losing trades, and I'm convinced that I've learned much more from that than from looking at the winners.

Looking at the charts from today's losers I see signs of an over confidant trader. When the trades roll easy for a few days it's too easy to get bored and over confidant, and if you have a day with no ups (at least at the stocks on my watchlist) for over 1/2 the trading day - it get's too easy to start trying to force trades. The catch is... I can't force anything to happen in the market.

I've spent all this time learning how to recognize and act on good set ups - and how to manage my losses, and how to exit my winners... only to throw it away when I get bored or over confidant.

Best to remain humble and bored until a good set up comes along.


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