monday, page-54

Humphry

What I learned very early on in my trading was;

1 - There is a massive difference b/w what "I Want" and what 'it will' ..I learned that instead of taking a position willy nilly and wanting for the market to go in that direction I best wait for the market to show me where its going..using my indicators figure out if it has more room to go, work out my Maximum risk, reward and break even point, write down my exit plan for both profit and loss scenarios and get in.

2. Dont get emotionaly attached to your trades, I used to get into a trade and hold and hold and hold and because I held so long my expectations for its profit would increase..one trade doesnt make you profitable its your ABILITY TO trade that makes you profitble.

3. This one is contentious and alot of ppl will disagree with me but NEVER add to a losing position...before I get into a trade I always have an exit plan and in the case of a loss its always either a % of capital or behavior around key technical points..and so when I write the exit strategy down I could never bring my self to have something like" if breaks certain resistance hold on to the short..pray..and if it gets overstreched get in more" that just doesnt look good on paper..sure sometimes you might get out of a red position by averaging up or down but if I was an employer and I had an employee (my trade) that wasnt performing I would never hire someone to carry him I would get rid of him and bring in someone more able.

Enjoy your trading and Gluck
Ehsaale