|
PureBytes Links
Trading Reference Links
|
Jerry,
I appreciate your encouraging comments.
What I have a particular problem with is not so much recognizing a bad
trade as "figuring out why" it was bad. That is, it seems to me trading
is unique in that the recurrence of MOST mistakes that we make in life
can be avoided by not repeating the same action. For example, you
probably wouldn't light a match around gasolene a second time. But if
you go long in a stock that subsequently drops severely, what was the
mistake that you could learn from? After all, sometimes they go up
under identical conditions.
I'm sure you don't have the entire answer to this dilema, but maybe you
could throw some light on how you personally go about recognizing, then
learning from trading "mistakes".
Thanks again.
Leo
Greatelto@xxxxxxx wrote:
>
> Leo said...."Your comments were exceedingly useful in illuminating some of my
> own shortcomings. That is, while I totally share your impatience, I
> have doubts about my ability to to truly *accept* my mistakes. It may
> be that you guys are better than I at differentiating having made a "bad
> trade", from viewing yourself as a "bad trader". That might sound
> simple to you, but those of us who sometimes can't make that distinction
> can find ourselves in deep grief."
>
> Leo, always remember, the "greatest trader" in the world will make a "bad
> trade" at some point in time. It was a business decision and he was wrong.
> What does he do? He figures out why, files it in his memory, takes a lick
> at the wound and goes on. In this business, nobody is perfect!! A loss is
> the cost of doing business....that's it.
>
> Jerry
|