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Leo,
I will inject my 2 cents worth of info to your post. You have answered
part of your delima in that TRADING is not like most mistakes that are made
in life. As such, if you use the logic that has made you successful in
your particular field in life, this will usually guarantee you failure in
trading. In life, you are taught to avoid risk. In TRADING, you are
accepting risk. You are making a decision without having all of the facts.
If you DO have all of the facts, the trade is over. To get a clear
understanding of my comments, read Mark Douglas' book The Disciplined
Trader, or read any of the works of Bob Koppel (The Inner Game of Trading,
The Intuitive Trader). Any methodology will create a large number of
mistakes. It is how you learn to control those mistakes. The STOP is your
safety net. Using your example of the gasoline , if you had to pour gas on
some material so that the material would ignite, you would pour the gas,
then move the gasoline container so that if the fire you started got out of
hand, you would not have an explosion. Good Trading.
Al Taglavore
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> From: Leo Karl <leokarl@xxxxxxxxxxx>
> To: Greatelto@xxxxxxx
> Cc: metastock-list@xxxxxxxxxxxxx
> Subject: Re: Trading....
> Date: Thursday, October 09, 1997 1:56 PM
>
> 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
>
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