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Gabriel

09/12/2020 07:11

$NASDAQ $TESLA $Apple

Just finished going over some of my trades for the week and decided to share.

This was likely a hard week for many. Volatility can be scary and confusing, not to mention challenging. It doesn't have to be, though. The right mindset, preparation, and openness to changing circumstances are important to trading.

Each week, I go over any trades closed. Maybe I'll discover that I missed something while trading, was too aggressive, made unforced errors, etc. There are many things you can learn (or relearn) from going over trades. While loss is never ideal, it can be considered a down-payment on future earnings if you use them as fuel to get better.

Study your trades, take a few minutes each day (I do it on a weekly schedule now, usually spending 2-3 hrs re/learning) to learn something new about trading. There are loads of great, free resources on the net to learn about every trading related topic. I learned by using Youtube, watching livestreams, Googling, etc. Sometimes I'd look for particular topics like charting, MACD, etc; at others, I'd just click on something random bc "life is like a box of chocolate," lol. The more you learn, the more agile your response will be for the different unexpected scenarios you'll face while trading. Just find something that works for you.

For the mindset, it's crucial to accept that losses and gains are both inevitable. Harder to do with losses, sure. But whether it's a win or loss, you shouldn't let it affect you for more than an hour. If we let them unnecessarily affect us, then we're more likely to commit careless trading. Ever had a winning streak and then suddenly you have an even longer losing streak? It's because you let the wins get to your head leading you to falsely believe you have the Midas touch. Ever had a big loss and then immediately jumped into another losing trade? It's because of the psyche's aversion to loss and not studying what went wrong in the original trade.

As well, if a loss really affects you, then it's often bc something went wrong before you entered the trade. Could be not setting/sticking to PTs/SLs beforehand, not enough diversification (too much money in one position, etc), unrealistic time span, improper consideration of your risk tolerance, or using money you shouldn't have. You have to work towards being OK with a position that is underwater (the percentage and time span depends on an honest assessment of your risk tolerance) or closing a position that is practically unsalvageable (on your respective timespan). Use the losses as fuel to get better. They will, over time, affect you less because you've properly compartmentalized them.

On a related note, try to limit your options trading if you're new. They shouldn't be entered into without proper assessment of the chart/techs and risk minimization. Because you can easily make bank with options, don't feel the need to throw gobs of money at them. A very small percentage of available funds is appropriate: loss won't immediately break the whole bank, gains still look pretty. (My biggest monthly loss ever was 20k bc I didn't follow all of the tips above while trading options repeatedly. And I say loss, but it was actually "house money," though it still felt awful losing it all. It's a bit different being down big in a stock vs options. I seriously cried that month when it all caught up to me. Fortunately, that was a long time ago.)

I'm off to bed. Hope this all makes sense. My sleeping pill has kicked in and I don't have the energy to read over what I wrote, lol. Apologies for any abrupt transitions, incomplete explanations, or whatever else may be wrong.

Be kind, understanding, and generous with yourself. Also to others, too. 😂

glta 🙂👍
Disclaimer: The comments, opinions and analysis expressed herein are for informational and educational purposes only and shoulk not be considered as individual investment advice or recommendations. Webull is not responsible or liable in any way for comments posted by pur users.

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All Comments(7)

Waldo09/12/2020 14:13
When i lose, its emotionally entering at wrong time, not sticking to my technicals as close as i should, trying go get profit regardless, when sometimes skillung a say or two is best. wait for the candles, they always come around.

Waldo09/12/2020 14:13

Skipping

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Carlos4409/12/2020 13:27
Thank you!

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Stocknut09/12/2020 11:55
Very nice.

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ben***com09/12/2020 09:44
love it ...

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iag***com09/12/2020 09:35
nice write up. everything said couldn't be more right

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Macoy09/12/2020 08:02
Well said... may you enlighten all the people who needs it. Love the message and thank you... 😀

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gsa***com09/12/2020 07:24
Good post...wise info!!!

Mer09/12/2020 15:50

Thank you 😊

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Sound off in the Webull community and discuss with other investors. Let your trading knowledge inspire others! Webull News 09/23/2020 09:51
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