Just take the loss while it’s small. You will preserve your financial capital as well as your emotional capital. Yes, there is emotional capital that we give away while we’re stressed with a trade. What I’ve come to realize is that all professional traders take losses, even the most successful ones. What separates them from […]
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Live to fight another day
Today I sold. I got my reaction rally to get the latest SPY position adds off the table breakeven. Tho it’s a relief, let’s look at what went wrong and what I have learned. In late December, I wrote about my failed dollar cost averaging and how not to throw good money after bad. I […]
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Never throw good money after bad
It’s definitely an interesting holiday season. Bitcoin is below $4000 from the peak of almost $20k a year ago; and the US stock market is tanking. I’m sure glad to be out of Bitcoin since Dec ’17. It reminds me the saying: “It’s better to be out of a trade wishing you were in it, […]
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Cut losses quickly, let profits run
The title says it all. I had a winning trade and I didn’t let profits run. It’s a two-fold situation really. I had TGT in place and was away from the screens. The TGT was around 15% profit, not being too greedy to let the trade turn around against me. So I didn’t get all […]
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Always use the same risk size
So far no trades had kept me awake at night until this one. It wasn’t about the trade setup, news or anything on the chart.. it was about risk size. Because NFLX had a similar drop just before FB on similar reasons (less user growth) but spiked back up quickly on the same day leaving […]