So, to keep my ego in line, and to continuously remind myself that I must improve, I like to look at some of my bad trades.
Here is a good one that I took in this contest account. I added to a profitable short near the low, then EXITED WITH A BIG LOSS AT THE EXACT HIGH! A nice fat, juicy loss, I might add.
To add insult to injury, the market abruptly turned once it flushed me out! Had my stop loss not been hit, I'd be up $1,700 more in the contest account. 17% additional.
Oh well.
The good news (for me) is that I followed my rules precisely. In this case, though, the rules did not work out so well.
Maybe this approach will help you - when your ego thinks you are great, give it a reminder or two that you are not!
A very wise king wrote long ago "Pride goeth before destruction, and an haughty spirit before a fall."
ReplyDeleteSo does a humble spirit precede a rise? We'll follow your progress to see!
Funny you should say that, because I wasn't watching that account today, and didn't check it until a couple hours after my post (around 5 PM ET).
ReplyDeleteI won't say anymore, but I will post my equity curve late tonight.