musashi's musings.

Musashi’s Musings.

Just going to put a few thoughts into a thread. We’ll see how it goes if it’s worth continuing or not.



Things to take into consideration in the beginning.

Always cut your losses early. Holding onto dogs can lead you to have a bottom drawer full of unwanted howlers. The only time you hold onto a security that’s dropped in price is. The chart is pointing at a reversal that will give you the option of pyramiding up or trading your way out of the loss. But be sure your chart reading abilities are up to scratch. The general rule is not to allow losses to go below 8% of the entry price. But that depends a lot on what you’re trading. If you find yourself holding howlers. Remember to get rid of the worst performing first. Keep your best performing for as long as possible.

Persistence is the key in the market as learning to trade will never happen overnight. It takes 10000 hours to make an expert in a given field. It requires the same and more to create an expert in the market. As the amount needed to learn to trade consistently is huge. It takes constant tweaking and reevaluating of your strategy to keep up with an ever evolving market.

Remain unemotional. Do not get involved with the decisions you make. Once you get too attached or over confident it becomes difficult to admit your trading mistakes. So keep the emotion out of trading. It’s great to make a correct call and earn some profit. But leave it at that and move on. Once you make trading your career you will find yourself making many incorrect and correct calls. The magic is to learn from the mistakes so that you don’t repeat them. But continue to make the correct calls. A trading diary is without doubt essential for anyone who wants to be successful in the markets.