A bomb happened once eevry few months

Discussion in 'Risk Management' started by innovest_11, Jun 18, 2009.

  1. Did you ever think that adding to losers was how he made those gains in the first place? Why would someone consistently profitable ever break their rules, unless out of boredom, trying something new, reasons which are fine but are just a matter of resposibility?
     
    #11     Aug 22, 2009
  2. what is the definition of a loser?

     
    #12     Aug 22, 2009
  3. A bad trade is one where you are moving the stop away from your 1st place either mental or hard stop.

    Averaging down is fine if that was your plan to begin with for example you planned to invest 400 shares in MSFT, 200 now and 200 more if it drops 2 points.

    However, if you invested 400 shares with no plan, and the stock drops 2 points, and then you decide to buy more shares, you are adding to a loser.
     
    #13     Aug 22, 2009
  4. You can't.

    It's a black swan.
    And, as such it's actually expected if you keep trading.
     
    #14     Aug 27, 2009
  5. cold (captain srebrenica + general ljubljana), this is the funniest username you've come up with. Thanks for the laugh :D
     
    #15     Aug 29, 2009
  6. Mercor

    Mercor

    You have developed a physiological habit of breaking your rules. Sometimes this is done to prove to yourself your rules are good.

    You need to gain control of the habit. best way is to plan your rule break. Set your parameters to allow yourself to trade outside your rules once a month until you can remove the thrill of cheating on yourself and deal with it emotionally.
     
    #16     Aug 30, 2009