Thanks - it really doesn't feel that way - I feel like a babe in the woods just trying to learn how to survive. The majority of the credit for my "progress" goes to my wife who has let me sound ideas off of her until we both heard the truth. AND especially to a good friend who is a much more experienced trader - this person has spent much time coaching me and helping me cut through my own B.S. so that at least I can start working on the right areas. Also I've learned so much here on ET - if not the details but at least specific areas of trading that need exploring & resolution. So Thanks to you and many others that have contributed. I'm lucky to now have a sound plan and a method to track my trading now so perhaps I can learn to execute as well. Only then will I be able to consistently trade well. Just like Mark Douglas says in "The Zone", the key is now undoing the psychological damage from prior trading. Best Wishes, Paul
I realize many make a distinction between trading and investing, but here is what Warren Buffett recently said in his letter to shareholders: "Indeed, during the 38 years we have run the company's affairs, gains from the equities we manage at Berkshire (that is, excluding those managed at General Re/Cologne and GEICO) have exceeded losses by a ratio of about 100 to one."
Slapshot ,great post My strategies are very similar to yours. I too found that I was cutting winners too short. Two keys I have found to eliminate myself from prematurely exiting a good trade: 1st : As long as my strategies are viable and I adapt to the type of mkt we are in I should have plenty of confidence in my plan.Then I must realize trading is a game of probabilities and I must always keep the risk vs. reward concept in my head.So as far as closing a winner early, if I close it out a winner and it's not near it's target ,technically it's not a winner because the gain will not be large enough to offset the losing trades. 2nd: One must figure out a way to never be upset that the mkt moved without one of their setups giving an entry.Something along the lines of the fact that ones setups will provide ample opportunities so it is not necessary to deviate from them. 3rd: 1 and 2 are much easier to accomplish if you have a source of income exclusive of trading. Just my thoughts.
"3rd: 1 and 2 are much easier to accomplish if you have a source of income exclusive of trading." I agree with that as well. I have heard of people talking about cash reserves in the checking account, but few mention earning wages or having passive income producing investments. Needing to have a winning week in order to pay the rent is no way to live or to trade.