Sunday, October 3, 2010

Lessons learned - part one


I want to write about some important lessons i learned recently. I hope it helps you as well.

1. Emotions affects trading - You woulnt believe how much emotion effect trading. If you are in a bad mood this will effect your trading wheater you like it or not. So first clear your head and put in order your emotions.

2. Consecutive losses - even the best traders have experienced a time of consecutive losses. They will impact your trading and your emotions. This will happen more often that you are prepared for. Be ready

3. Too much winnings - will disrupt your emotions. Trader often feel overconfident and cocky. This is the time they are not on the edge all the time and sooner or later mistakes occur. Dont become overconfident if you are have a winnin streak.

4. Position sizing - one way to hurst your trading is position sizing. Too large positions hurt your portfolio and hurt your emotions. This can trigger exaggerated emotional swings in either way.





1 comment:

  1. TCF Online Banking
    The best traders have experienced a time of consecutive losses. They will impact your trading and my emotions.

    ReplyDelete