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Al & Richard thanks for the advice.
When I made the comment about taking a $260 loss on a trade that would
whip me out if I made a couple of mistakes. The money isn't the problem.
It is the mental victory that I can't afford to lose. Some how this is a
fine line between working hard and ego. It is more of self reflection
about what I am doing or not doing to make myself a successful trader.
How does I plan and develop a strategy.
For example, I know that I have not been to the gym and read (books on
the market) as much as I had been. I need to get back to it and I am
making steps to do so. I have a friend who wanted me to apply for a head
high school football coaching position with him. That took time away
from concentrating on the market over the last two weeks. Then I have a
1-1/2 year old child that doesn't always cooperate when the market
moves. (But the last is a problem I gladly accept, even if I have to
bite my lip at times.)
Now as far as the indicators: "HOPE", "PRAYER", "WISH" they are in
version 6.51. (LOL). Humm, might need an upgrade.
On the more serious side. When you said "If you cannot afford to cut
your losses, you are saying that you no longer are in control of the
trade...."
I know what you are saying and when I lose control I do cut my loses. I
am not sure if I am going to be able to express or convey what I am
trying to say for some reason. But here it goes. "Cutting your loses."
We always hear it but what does it really mean? It is a very subjective
and empty statement. But when you add 'when you lose control of the
situation', cut your loses then it begins to make more sense. How a
person determines their level of control is subjective. So the
abbreviated message of 'cut your loses' actually is incomplete and
requires some experience with trading to be able to fully understand the
message.
For me today was a good example of cutting my loses, in the context of
'control'. When the market was dropping this morning I sold my 50 shares
of YHOO for a small gain. I just missed the uptick so I bailed out a
little lower. Well it didn't drop any further so I went long 60 shares.
The market was still weak and we had a bit of a sell off in the middle
of the day I turned and went short 60 shares. But the price wasn't
dropping so I figures I would just go long 60 shares. Which is almost
flat. Now I look at the above trades and feel that I didn't make
anything on it but I did stay in control. ( I will also say that these
trades were not strategic trades but speculative.) I did cut my risk as
I viewed the market conditions. Since I turned the trade going from long
to short on several occasions I spent $40 on commissions and I lost a
total of $33.75 as a result of where I placed the trade. Another reason
I went flat was that I didn't want to over trade.
(DO me a favor and lets not get off on these trades. They are not
important.)
Al Taglavore wrote:
> Harley Meyer wrote:
> >
> > Hello Rick,
> > Not harsh at all.
> > Comments are interspursed below.
> >
> > Rick Mortellra wrote:
> > Snip>Snip>Snip>
> >
> >
> > As far as a $260 loss I couldn't stomach it. A few loses like that
> and I
> > would have no money to trade with. Granted cutting your losses and
> > moving on is good for some. But right now I can't aford it. Although
> I
> > am losing time by not making as much money. I am gradually gettting
> my
> > bearings straight and I am starting to make some money trading. We
> will
> > see as the rest of the week goes along.
>
> > Harley
> >Snip>Snip>Snip
>
> Harley,
>
> I have appreciated your many post on this list. Because of your
> obvious
> sincerity and honesty, I would ask that you reflect on the above
> statement: "...Cutting your losses and moving on...but right now I
> can't afford it." If you cannot afford to cut your losses, you are
> saying that you no longer are in control of the trade and you must now
>
> depend on HOPE that the market will come to your aid and salvation.
> Hope is the one emotion that the trader surely does not want...and the
>
> market does not even know you are a participant.
>
> I still use MSW ver 5.11. I re-checked the indicator list and do not
> find the indicator "HOPE", "PRAYER", "WISH".
>
> This post is an effort to share with you because you have shared with
> all of us. At some point in your investment career, overstaying a
> position will inflict serious pain. Better to learn to absorb the
> small
> hits.
>
> Al Taglavore
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