Lessons learned by a seasoned trader (Eddie)
Lessons learned by a seasoned trader
Posted by Eddie
I closed out my soybean shorts today and for good reason. Not because they are not going down but because of mistakes I made in this trade:
1: I traded too many contracts. I could have traded out of this mess and made a breakeven or a small profit. In fact I had a chance last week to make a very good profit. Greed got in the way though. That was the biggest mistake rite there. I should know better!
2: Not trading the way I am suited. I day trade best. Position trading is just not for me. I can pick a small trend out aof a daily market swing with no problem. But hold something for longer than a week and I am doomed!
3: Not listening to the market. It looks like it wants to go down. But we are at the same place we were three weeks ago! Intraday swings are wonderful rite now and I can kick myself for not taking advantage of that trade.
4: I chased a loss instead of closing it out and starting over again fresh. Psychologically that left me vunerable to market flutuations both good and bad.
I still had enough money to hang tough but that is not the point. Of these three mistakes the biggest was having too many open contracts at one time. I left myself no room to move. Take a lesson from me!