Friday, September 23, 2005
Trading record
September trading record is just updated. Please notice that I had lots of small loss this week and I come up a conclusion after that: the market turned soft on September 13th, why did I bother trading since then? If I shut down the computer on that date, I would have avoided all these small losses. And that is what I am going to test in the future. When my indicators say the market is not in a friendly environment, I would just close my positions, shut down my computer and get away.
Subscribe to:
Post Comments (Atom)
5 comments:
UCLA,
I think you made a very astute observation. Something that William O'Neill has written about, the bit about all the small losses you had. I am just an amateur, but I strongly believe that we do need to listen to our portfolio. That is, when we are accruing losses the market is talking to us!
Time to stop adding money to the market, time to avoid making trades (if you are going long), and time to "sit on your hands" as I like to say.
Nice blog. I am a big UCLA fan having formerly lived in Los Angeles, and having spent a year in classes while in High School!
Good luck!
Bob
Yes, Bob. You are absoluetly right. The reason that I did not get away from the bad market entirely was I thought I could find some chance to get back my loss if I stayed in. But the lesson is there are chances in a unfriendly market, just much less than a strong trending market. It is not worthy to risk more money and time to explore the much fewer opportunity.
Definitly think one should add any new money when things are tourning south. Good idea to close out the weaker positions too.
--bumby
Frank, I agree with you. It is not the time to short yet. I wanna see more confirmation before I pull the short trigger.
Bumby, add new money when the market turns sour? To me, I personally don't think it is a good idea. Because I am mainly a momentum trader, I like to buy breakout plays. When the market is in a bad mood, adding more money seems throwing money into water. It doesn't make sense to me. And the market will just eat your money without saying "thank you". But it may certainly work fine for other types of traders.
Post a Comment