-Trading mistakes-
- Thread starter Kastro_316
- Start date
what were some of the better threads/posts you read?
Stops that are too tight. The correction for me was "letting the trade pay for itself". That is taking out a portion to cover the expenses of my trade (including principal) and then setting a much looser stop to let the profit run. Still learning ...
http://www.elitetrader.com/vb/showthread.php?s=&threadid=62546
Trading Journal from 2005 (thread closed) - shocking example of truth in P&L. http://www.elitetrader.com/vb/showthread.php?s=&threadid=50472
Well, to keep ON TOPIC....
Ripley, who I've followed as a trader as well. Ripley has been through some incredibly tough times. He is another unique case that I have studied here on ET. *Note that isn't a dig Ripley
*http://www.elitetrader.com/vb/showthread.php?s=&threadid=49314&perpage=20&pagenumber=1
That's just one of the great threads, Ripley was nice enough to post PDF's as well.
I followed Red_Ink_inc blotter from the first post to his one he has now. Definately shows me consistency. I almost trade exactly like him in very many ways, except he uses a lot more shares than me and trades less volatile stocks than I do. I try and measure my performance with by averaging down his performance to 100 - 300 shares.
- averaging down;
- revenge trading;
- keeping a position while "hoping" that things will turn around somehow;
- rushing in a trade with the fear of missing out on an opportunity.
- revenge trading;
- keeping a position while "hoping" that things will turn around somehow;
- rushing in a trade with the fear of missing out on an opportunity.
My #1 mistake:
Getting too fancy for my own good!
It's soooo easy to get overextended which will inevitably cause confusion and mistakes. Take a more zen approach now. Stripped down indicators and analysis. Concentration in only 1 or 2 positions for time period. Do I miss some action, absolutely.
Specialization has helped me DRAMATICALLY!
Read somewhere about Steve Cohen where he said he hires his traders to trade their specialty in a concentrated area and has many traders. Stick with what you know and concentrate on it. To quote Warren Buffet a little, "Put all your eggs in one basket, but pay VERY CLOSE ATTENTION to that basket."
Getting too fancy for my own good!
It's soooo easy to get overextended which will inevitably cause confusion and mistakes. Take a more zen approach now. Stripped down indicators and analysis. Concentration in only 1 or 2 positions for time period. Do I miss some action, absolutely.
Specialization has helped me DRAMATICALLY!
Read somewhere about Steve Cohen where he said he hires his traders to trade their specialty in a concentrated area and has many traders. Stick with what you know and concentrate on it. To quote Warren Buffet a little, "Put all your eggs in one basket, but pay VERY CLOSE ATTENTION to that basket."