Ann: Trading Halt, page-201

You said you knew the risk and reward so that is a VERY objective expectation. That means you just follow the plan. When I enter, I already know what my haircut is when I’m wrong plus slippage. I don’t really know the rewards though. I have a target but I don’t demand the exit price. Sometime it’s just the market, it gives you your target and sometimes it doesn’t.

It’s those times when price just seeming going nowhere, neither much paper gain or loss that makes it difficult to manage. It’s all psychology and this is where it is the hardest. Sitting on your hand waiting for price to come to you before you fire or exit.

Have a look at FXL, 2 great pullback right on almost perfect support levels. Both handsome double digit gains and fast. MY limit long orders just lost patience twice after many weeks of waiting both cancelled and the bam it spikes up!! Ditto LLC. What do you do! A good curse wishing you were in is better than in cursing you are out.

Enough on these logical aspects of decision making. It helps me too as I post my accumulated philosophy through terrible experiences so that I remember through constant reminding I don’t lose focus.

Believe me, blaming BoD or conspiracy is a toxic mindset. Reign in the greed is not something that comes natural to any investor but vital. I shake my head as to why are there so many in such deep draw downs! My largest here is close to 20% and being the last one, I initially wanted to just leave it and perhaps average down! It was a really simple decision once the impulsive thought dissipated, I don’t want to dig a big hole not worth getting out even though I could lose the stake with just a black eye but that’s the point, break a cardinal sin and usually it will repeat.

Good luck. We retail investors really need to be cautious because we are the canon fodder. Don’t think loyalty to BoD some how is s moral crusade to investing.