Friday, January 23, 2009

More Study

I'm taking time do serious study and analysis. I'll be getting to the analysis of my trades soon -- for now I am studying overall guidelines / principles. It seems that to become a good trader, you need to consider each trade a small "bet" and not hold to any preconceptions of what will actually happen. You expect to lose a certain small amount and set your stop and maximum loss BEFORE going into the trade. You place your best bet based on a setup, and move on, win or lose. The more you rely on things like hope, emotion, feelings of "it should to this", the more you will lose. You can't control the market, only your own (small) bets, and your own reaction to it. If you can cut off your losers quickly, you can survive even on a small % win ratio. It also helps to have a set of rules / indicators etc that are objective, not based on emotion or how you "feel". Most analysis / homework is done after the markets close, to keep objective. Some people I consider models are: John Carter, Bo Yoder, Linda Raschke. Good trading is non-emotional and should appear "boring".

1 comment:

Market Monk said...

Oh man, I am offended that I am not on your list right up there with John, Bo, and Linda!

LOL. Just kidding.

Great post as it shows that you have "seen the light".

MM