Thursday, October 11, 2007

Going Over Trades

I went over my trade book to see if I can spot a common error. I'm impatient. I've been buying stocks before the opportunities fully present themselves, I'm jumping the gun basically and it's been biting me in the ass.


I have the right idea, I just force the trade. I'm impatient. So, this is my plan to help combat that.


I'll be looking for stocks making pre market highs. When the market opens I'll let it do it's thing and wait for a pull back and buy once it's fully established new support levels or current ones. I'll only buy if the market is rallying in the morning to help boost my odds. If it's not then I'll wait for the market to rally and see if I can spot an entry. I'm not going to be buying stocks in bad market conditions anymore. It's not worth the risk.



Strong Points:

- I can buy without fear or fear of losing money

- I can buy without hesitation when I see a potential opportunity

- I predefine my risk before I enter a trade

- I'm constantly monitoring my emotional and psychological state while I'm trading


Weak points:

- I'm impatient

- I'll force a trade without viewing it objectively

- I over trade


I need to work on eliminating my weak points. I'll try and come up with some ideas on how to do that.

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