detachment from money and emotions

Quote from itcanbedone:

ok lemme give you all an example.

i'm long WM a ton. almost 60K shares worth. so every dime means a 6K move.

now i am scared. a few days ago the tosco fund news caused WM to shoot up a quite a bit; i was +95K profit wise. I did not sell. as I belive, whatever that's worth, that WM will go higher in the near term.

but now consider where my mind is: i see my account up 90Kish and now after that event, it is up 40Kish. so i'm seeing a net drawdown from peak of 40k.

i am sitting here scared/angry/ and truthbe told, it affects my social and emotial life. the ups and downs are painful.

You should also consider, what if the stock is halted and declares bankruptcy overnight, opening at 5 cents per share. How will you react? Will you just take the hit, or will you be suicidal? Keep your size at a reasonable, not excessive level.

i've done a couple of things. put in a stoploss at my entrypoint and just abve it. so worst comes to worst, i won't lose my intial capital. also, i also understand that if my account is up that really is my money and there is no such thing as 'house money.' excpect the 'money honey' that is liz clayman.

so i speand time away from my screen, think reflect on my thesis. and wait.
More...

This is a symptom of trading too much size. Sell down to the point where the position no longer stresses you. Then you will find it easy to sit and wait for your score.

Over time, if the position moves your way, you may find yourself being comfortable buy a bit more every few days. This is how you build a position whilst retaining staying power & composure.
 
Quote from itcanbedone:

ok lemme give you all an example.

i'm long WM a ton. almost 60K shares worth. so every dime means a 6K move.

now i am scared. a few days ago the tosco fund news caused WM to shoot up a quite a bit; i was +95K profit wise. I did not sell. as I belive, whatever that's worth, that WM will go higher in the near term.

but now consider where my mind is: i see my account up 90Kish and now after that event, it is up 40Kish. so i'm seeing a net drawdown from peak of 40k.

i am sitting here scared/angry/ and truthbe told, it affects my social and emotial life. the ups and downs are painful.

i've done a couple of things. put in a stoploss at my entrypoint and just abve it. so worst comes to worst, i won't lose my intial capital. also, i also understand that if my account is up that really is my money and there is no such thing as 'house money.' excpect the 'money honey' that is liz clayman.

so i speand time away from my screen, think reflect on my thesis. and wait.
More...

Once you've protected the trade don't look at your account balance during the week.. Hopefully it is not too large a percentage of your account.. because gaps happen.. especially in Finance stocks..
 
Quote from itcanbedone:

ok lemme give you all an example.

i'm long WM a ton. almost 60K shares worth. so every dime means a 6K move.

now i am scared. a few days ago the tosco fund news caused WM to shoot up a quite a bit; i was +95K profit wise. I did not sell. as I belive, whatever that's worth, that WM will go higher in the near term.

but now consider where my mind is: i see my account up 90Kish and now after that event, it is up 40Kish. so i'm seeing a net drawdown from peak of 40k.

i am sitting here scared/angry/ and truthbe told, it affects my social and emotial life. the ups and downs are painful.

i've done a couple of things. put in a stoploss at my entrypoint and just abve it. so worst comes to worst, i won't lose my intial capital. also, i also understand that if my account is up that really is my money and there is no such thing as 'house money.' excpect the 'money honey' that is liz clayman.

so i speand time away from my screen, think reflect on my thesis. and wait.
More...



First you should never risk more than 10% of your account in any trade. Second when ever in a situation where you don't know what to do(scared or other emotions) sell/cover half of your position. Never let greed kick in unless your in the zone then push yourself and by all means get greedy. Never 2x a losing position. If this stocks hold 3 you are looking great but that is the question does it get to and does it hold the level?
 
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