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Larry,
You make some interesting
points...especially the one about "trading mistakes". I'm ashamed to
admit this but I seldom really know what constitutes a prior "mistake" to avoid,
especially when initiating a trade. I'm willing to bet that stocks have
recovered nicely after your failure to cut a loss, and that they've gone
down steeply after you decided to sell at what you perceived to be a
reasonable target.
I'm sure there are true mistakes
in life that can be avoided the second time around, but more often than not
the similarities and correlations with past behavior are sufficiently
different make them unrecognizable.
You've probably heard the saying
"third time is charmed".... a fairy tale about a guy who fails two times
then has a marvelous epiphany which makes things work wonderfully on the
third try. The same people who warn us about not repeating mistakes
would, if pressed, relate stories of how their persistence through
repetitive failures more than made up for earlier losses.
Bull shit is it?....Yeah but I'd like to argue that so might be the notion of
learning from mistakes. It's like one's first case of
clap.....it seldom causes one to discontinue the offending
activity.
Mind you, I'm not recommending that we
throw caution to the wind, but I could use more specific guidance on just how
one avoids mistakes, or, better yet, how to identify them in the trading
environment before they happen..
Leo
----- Original Message -----
Sent: Monday, May 30, 2005 12:51 AM
Subject: [Metastockusers] Great Tip and
New blog site with trading tips
One other technique I find
useful is to keep a log of my trading
mistakes. This allows me to analyze
my actions on a regular basis,
and helps me avoid repeating those mistakes.
Whether you are a
novice or experienced trader, keeping a daily trading log
can be
extremely beneficial. Although it's a lot more fun to write and
talk
about our successes, recognizing and then removing the
trading
demons from your life is one of the quickest ways to become
a
profitable trader.
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