How could the 7 choices not capture a substantial chunk of the vote? There was no 8th choice. Saddam Hussein won 100% of the Iraqi vote too -- he was the only choice on the ballot! My "technical glitches" choice wasn't an option. I had to vote for "chasing", which is what I end up doing after the technical glitch is fixed.
I've been wondering around today thinking about the why instead of the what, and I kept coming back to the same answer... No offense taken btw Natalie
Aaron, With all due respect, I wouldn't think that "technical glitches" falls under the same category as the other 7 errors listed for one simple reason - all of the others happen entirely because of the failure of the trader himself (or herself) - they begin, exist and end solely due to the mindset or actions of the trader. Technical glitches, although costly and a problem, are not usually a result of a trader exercising poor discipline, judgement or skill. The DSL, Broker problems and other things you mentioned are usually not the direct result of a trader's efforts. Or perhaps I should have listed 'lack of preparation for problems" as a Trading Sin? Regards, Paul
Getting into a trade just because you have time to trade that day. Rushing into trades in general. When I was a musician, it seemed like a good balance to practice and study for about 2-? hours a day and then perform for maybe 4 or 8 hours per week. I now try to do that with my scalping. as a proactive response to one of my old mistake patterns, now I chart and study way more than I actually trade.
Actually, the relationship between technical glitches and those "7 Deadly Sins" is not that much of a stretch...I distinctly remember back in 1999 using IB and having the frequent disconnects while having too much size on in the markets...To make a long story short, the disconnects became like the "gremlin" in the whole trading plan...Its amazing what an outage will do to your faith in trading... BTW, back in 1999, if you were stuck or their system did not work, you were stuck indefinitely...Sometimes, it was for a day(lol)...
Not trading enough size Having a trading plan The market changes and you should never have a plan Not doubling up on losing positions Not saying your prayers before putting on a position Ignoring the advice of Waxie Not listening to CNBC Not listening to your emotions you gut is your best indicator you must always listen to it.
IMO, "too much size" and "counter-trend" are more method than mistake. So I took them out and changed the list to 7 deadly sins created by emotions. I added 2 and 3. 1) Chasing know you missed entry and chase it (anger, greed) 2) Cut profits short affraid to give up gain. (fear, greed) 3) Overtrading Trying to explain and trade every move (lack patience, greed) 4) Jumping the Gun Too eager, afraid to miss move (greed, fear) 5) Adding to Losers Refuse loss (Ego, hope) 6) Lifting stops Same as #5 7) Revenge trading blowing off steam If you're guiltly of one, you're probably guilty of them all. Because its just a lack of discipline.
I have been day trading less then a month and besides "jumping" in too soon on my entries the following two problems have kept my profits down also and but I think I have solutions for both. Monday trading will tell!!! 1. I have in this short period left too many (eventual winning) trades on the table. I guess I don't want to get beaten in highly volatile situations. Solution is obvious: I always plan a "1R" exit if all goes awry but I have to rely more on it and knowing if I'm wrong the cost is minimal. But as I have found out so far it has cost me more to not trade at all. 2. Taking profits too soon. Almost the same as above. but now I'm in a trade and the price is fluctuating and I may see it as having difficulty in reaching new areas for the day. Again, if the overall market is basically supportive, then I should hold more often then not through minor fluctuations and wait for stronger signs to close the trade and ride it as long as possible for the day. Again rely on "1R" as the exit and thereby give up some profits but hopefully running most as far as possible.