"5. My risk is always defined before I enter a trade.
Agree Disagree."
Disagree:
I have a stop limit when I entry a trade and I assume that is my risk. Yet on several occasions. I have been gapped and have taken much larger losses than I had anticipated as my risk. I had not accounted for the black swan type of events.
Disagree:
I have a stop limit when I entry a trade and I assume that is my risk. Yet on several occasions. I have been gapped and have taken much larger losses than I had anticipated as my risk. I had not accounted for the black swan type of events.
"11. I have sustained periods of consistent success usually followed by some fairly drastic draw-downs
in my equity. Agree Disagree"
I find this the most frustrating aspect. Just when I feel I get it and I'm "in the zone" I find my self taking a large loss on a trade where I had bent rules. Last year I went in big FUEL and took nearly a 10% hit. At the time, that happen I was up over 60% on the year and had just completed a 16% month. I could do no wrong.
I did it again in January and in June. None of these drawdowns were slow. They were usually caused by I don't fault the market, downgrades, missed earnings or any of the things the financial press may have attributed the drop in a stock. I got intoxicated with my success and suffered the hangover.
Although I have been able to pick myself up each time and trade successful and pull myself out, It's time to stop that cycle.
Agree. Probably related to 11. There are times when I feel my profits are too small relative to the number of shares I have on, which prevents me from taking the profits. Many times those positions cause the most harm.
We attempt to rationalize moves and apply logic to why a stock has moved too much or why It will move a lot in our favor. We jump at poorly planned trades out of fear of missing out. Our equity curve reflects our emotional state so when we get a burst in our equity curve we do not see the risks and trade in a manner different than what caused the equity increase.
I find this the most frustrating aspect. Just when I feel I get it and I'm "in the zone" I find my self taking a large loss on a trade where I had bent rules. Last year I went in big FUEL and took nearly a 10% hit. At the time, that happen I was up over 60% on the year and had just completed a 16% month. I could do no wrong.
I did it again in January and in June. None of these drawdowns were slow. They were usually caused by I don't fault the market, downgrades, missed earnings or any of the things the financial press may have attributed the drop in a stock. I got intoxicated with my success and suffered the hangover.
Although I have been able to pick myself up each time and trade successful and pull myself out, It's time to stop that cycle.
21. There are many times when I am in a profitable trade and I know the move is basically over, but I
still won't take my profits. Agree Disagree
Agree. Probably related to 11. There are times when I feel my profits are too small relative to the number of shares I have on, which prevents me from taking the profits. Many times those positions cause the most harm.
"30. In a few sentences explain why most traders either don't make money or aren't able to keep what
they make."
We attempt to rationalize moves and apply logic to why a stock has moved too much or why It will move a lot in our favor. We jump at poorly planned trades out of fear of missing out. Our equity curve reflects our emotional state so when we get a burst in our equity curve we do not see the risks and trade in a manner different than what caused the equity increase.
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