I lost money trading this week...

By
Real Estate Broker/Owner with Unconventional Prosperity

The hardest part of trying to beat the market is...

It’s not predicting the market.

 

It’s not finding the time to trade consistently.

 

It’s not digging up the right opportunities.

 

It’s not finding the right strategy at all.

 

I’ve been a full-time trader for more than a decade now, and I’ve learned one fundamental lesson that trumps all the others: Unfortunately, the hardest part in beating the market is sticking to your plan!

 

Think about it: you build a solid trading strategy. It fits your comfort level, it reduces your risk, and it can work whether the market goes up or down. It’s perfect.

 

Then, a worldwide pandemic hits.

 

There are thousands of traders all over the world who are going to lose a lot of money in the next couple months. The economy is taking body blows thanks to the coronavirus.

 

With everybody being urged to quarantine and major events shutting down, the market is being brought to its knees.

 

And those traders? They’re starting to panic. They’re looking for ways to react.

 

And they’re pulling away from their plan… if they even have one.

 

We’re emotional creatures. There’s no denying it. When major events happen, we feel like we have to do something.

 

But if you have the right plan in place, you WILL make money if you stick to it!

 

Many, many traders don’t. They either don’t have the right plan to react to market conditions, or they just get too emotionally-driven and deviate from it.

 

It’s okay. It’s human nature. We make mistakes.

 

I guess the goal is to try and make less mistakes until the math is in our favor....

 

Unfortunately, this week I didn't follow my rules and lost 20% of my trading capital. I kept holding a stock as it plummeted on 'fake' Corona virus news. Lesson learned!

 

I certainly won't be taking high risk stock or options trades this week...

 

Be safe this week!

 

Russell

 

 

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Just for Fun

Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?