October 30, 2008
Take all emotions of your stock trading
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You must make your stock trading) as close to automated as you possibly can. Why? It removes all emotions from your trading. I can't say my method is the very best but it's good. It is rule based and makes money in all market conditions. Sure, I am wrong. I take a loss and move on. No questions asked. Act like a robot with no emotions. No thinking about what could I, should I do. And when I snag a big winner I automatically follow my trading system) trading system and let that kick me out of the trade as opposed to agonysing whether I should get out or give it some more room. I can't trade the very peaks and troughs. I have never been clever enough to do this. Nor do I have to.
To me, being unemotional about my stock trading) is as improtant as the gains. I’d rather make 40% on my money using my automatic method than 60% but where I ran up and down with my emotions, worrying about positons. Second guessing etc. You have to decide what is important to you. Peace of mind or trying to wring out that extra 10% by being smart?
What holds more value for you, time or money? It’s important to establish what you want first before you set off and get it. I haven’t looked at stock intra day prices for a few months now. And boy do I feel better for it. It can become a very bad and time consuming habit to check on intra day price quotes everal times a day. And what about the dance your emotions go on when you view your trading positions.
Automate your trading. Run it like a business. say goodbye to emotional trading and get a life away from the quote machine
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