Week Ending 24 May The week started well with a strong start from overseas, but headed down hill from there. Can’t analyse what was successful because all I can see is red – will leave that to someone else.
Quotes from traders; related to theme of losses, longwinded but some necessary words of wisdom and need to read their actual text!
“I feel for you strauss.. this can be a really hard unforgiving gig. I have been where you are a few times…you get a few winners under your belt, confidence is up then maybe you get a bit euphoric and careless and start to over trade..taking the opportunities that aren’t really opportunities at all and then the whole thing falls in on you and you end up losing much of what you gained. This can be discouraging and lead one to go to the other extreme where you become so cautious that you never pull the trigger and sit there day after day never taking a chance.. Getting the balance between those two states of mind is the key and I still struggle with that although I am getting better. I don’t care how intellectually gifted someone is, pulling the buy or sell trigger at the right time is more about being in an emotionally good space. EQ is more important than IQ in this game because recognizing the winner isn’t really rocket science. Sometimes I ask myself, how could I be so dumb but it is not dumbness at all but rather market induced neurosis” nine lives
“really feel for ya mate, it couldnt have been more simpler tho buy something to lock in your profits at the end of Mar or straight after Easter thats what I do every year” treasurehunter
“I have been through some dark times myself but tough times make tough people I believe 100% that one needs to experience the tough times the market can provide To truly unlock the magic the market provides Resilience counts for alot in this game imo I used to have a tendency to overtrade when I was in a rut I know myself now enough to recognise when I am getting into that zone And spend some time just watching, even away from the screen The market will always be there when you come back As A trader, I know deep down I am defined not by my winning trades But by my losers I sincerely wish you the best, as I said I have no doubt you will become even stronger as a result of this setback If you take the lesson from it Consider it a cost of doing business A loss is only a loss If you learn nothing from it” McKagan
"I reckon the "Let the runners run" rule Only really applies in bull mkt I am selling most spikes in the current environment I try not to let greed take hold when a target is reached Nothing worse than seeing a winner turn into a loser" McKagan
“re stops etc try to find some moving averages that suit your timeframe they smooth out the trend for short term I use 7 and 14 day ( which are close to the basic MACD sell signal) you will see with TEG that the volume dried up as the moving averages crossed stops are your best friend when trading in the pound end of the market” gizard
“liquidity I cant remember how many times I stressed the importance of that one since end of Mar you are heading into a traditionally difficult northern hemisphere summer season and the cost of holding onto something that has next bid under 50c is 25c or something similar could be huge sure these stocks run fast & are very tempting at times, but the odds of making big loss during this particular time period far outweighs any benefits whatever you do, dont fight the odds! market starts changing, your position size & position style should change accordingly. this is where I dont mind some of the sub 1c stocks if I really want to hold something at least it gives you 10s of millions of volume to get the heck out when things go wrong by either selling breakeven or for 10-20% loss there will be another cycle coming so pull it together & recycle all the lessons” treasurehunter
