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Johnnie,
This is why I like Van Tharps book as an
introduction to the topic of controlling yourself, part of one of the threelegs
to trading. Go to Van Tharps site and download his game. Its free
for a week and worth a play. At first I thought it was pointless, andof
course bombed out before the end of level one. Then next go I finshed
levels 1 to 5 in a single go and turned a tidy profit. The point is
(although I disagree a little with the execution in the game) the lesson iswell
learned - have a consistent plan for trading and control yourself and the the
risk levels.
In the example you traded I would suggest a Motto
over your computer "hope is the enemy of wealth". Of course you should
have sold the day you had a decent pull back. You could have had a little
rest for a couple days. And then when at 65/- bought back the same number
of shares you had at the beginning, just to see. If they dipped, sellthem
again because you are too early. But in this case they recovered.
Still its always easy in hind sight.
But try the Van tharp exercise. <FONT
face=Arial size=2>Hopefully this will be the first step in understanding the
perceptual filters one uses when viewing data. Ive tried the chart
sideways with prices running down, upside down, looking at chart through a
mirror and in a mirror upsidedown, - just to shake my preconcieved notion of
what I might have thought was happening.....and of course its comfortable when
you practise but when under stress of losing money, memory of the practice takes
over.
(sorry this is so long I got carried
away)
P
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