Tuesday, February 9, 2010

Trauma

Having given back all gains from the beginning of the year then taking losses, I feel like I am stuck.  The emotional toll of being a value trader -- and then deciding to cash out to protect losses (and thereby selling near the bottom) has hurt my confidence.

I am quite sure I have solidified my trading strategy as a swing trader, using charts to denote times to enter or exit the market.

I did not use clearly defined risk management skills.  I remained far too complacent as the signs stacked up for a correction.

I need to let the past go and not fear missing out on a new rally or remaining in cash until signs show I should reenter.  I need to be willing to put cash to work as the signs emerge that the markets can push forward.

 This is  a long race.  The main thing is to learn from each new mistake and rise anew.

It's time to focus on the next step now.

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