Month of August has just been utter nonsense trading by me. Currently, I am still in profits from the day I started trading , however, the losses accumulated these past two weeks have reduced my profits substantially.
As a trader, its time for me to sit down and review the reason for the losses I have been accumulating.
1. Not Sticking to my plan.
2. Not cutting losses early.
3. I can identify buying patterns with ease but my ability to identify pattern to shorts are the worst (and when the markets have been going on a downward spiral- its not helping the matters).
4. Chasing stocks.
5. My Broker which is Questrade is not helping the cause, every now and then I am getting stuck in trades and am not able to send orders because their backoffice is not able to communicate to the exchange.
What I am doing good
1. I am not doubling up after my losing trade (this has been my biggest improvement, a trader always have a tendency to double up after their losing positions trying to make up for his previous loss and in the process losing all his capital).
What I am looking to do
For long positions I try to determine the relative strength of a stock by following S&P500 SSO or QQQ, to short I will be looking at inverse ETF'S like TZA or SDS (I will take short positions only when these inverse ETFs have a buying pattern in it).
I am restricting my self to trade only 3 patterns.
I would have said wish me GOOD LUCK, but in trading LUCK has no meaning nor any importance, neither has HOPE.
RISK MANAGEMENT (which is how you manage your trades is of prime importance) is something I would be giving the highest priority to.
ALL I CARE about is WINNING. I am a big believer of comebacks, as long as a person haven't fallen into hole too deep to dig out of, comebacks are always possible. (im my case if i loose all my initial $7K, then comeback would not be possible at all).
dchsn6
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