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Both questions imply that you are out of control with your trading. If you
have a system you trust and have tested thoroughly then you know what the
likelihood in percentage terms are that you would be having a loss and how
big that loss should be at any given time. So taking a loss should be no
different than ordering a pizza. If you know your system then you will also
know when it is going to trade and when it is going to be out of the market.
You will have already decided that you prefer taking small bites of a
sideways market over sweating out big drawdowns in a roaring trend for
example. Therefore missing a trading opportunity will not bother you because
you know that your system is going to catch the particular kinds of trades
that you designed it for. If you are missing opportunities and that bothers
you then you would design a new system to catch those trades, which would
mean that missing an opportunity would provide you with and incentive to
grow and be creative.
Either way, you are in control of your trading instead of your trading being
in control of you.
d
-----Original Message-----
From: Patrick White [mailto:spy@xxxxxxxxxxxxxx]
Sent: Tuesday, August 03, 1999 6:41 PM
To: Omega
Subject: Discussion Idea
I just thought I'd start a discussion with the following question:
Which is psychologically more difficult for you?
a) Taking a loss
b) Missing a profitable trading opportunity
Thanks,
Patrick White
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