AI
Thursday, August 14, 2008 5:53:08 PM
Simplegreen's Trading Methods - A must read
Assume that your account is very small and you have ..let's say $2500 cash
Ok..you have no stock and $2500 cash so with this limitation 2 things are a MUST..EVERY BULLET MUST COUNT and PATIENCE is cultivated in your brain.
At this point I will say that this is the way I treat my account even now...as if I only had that $2500 !!Burn this into your thinking and you will reduce your bad trades and losses dramatically.
It is very rare that I take a loss of any significance and the percentage of bad trades I make is very low.Even Warren Buffet once said about 1 out of 8 calls turn out to be good calls and I certainly do a lot better than that but it is only because I have myself brainwashed into being "hungry" on every trade.
The greed factor is also cured by this type of thinking...If you are "hungry" you will take profits at a good profit point and not look back..you are just happy to add to that $2500 portfolio value that you started that trade with!
This type of thinking IS IMPERATIVE to me and I WILL NEVER.. NOT be hungry in my trading again.
When I first started years ago with $4000 I did quite well til I got up to around $11,000 I would start to backpeddle.After a few cycles of this I realized I was the problem because I was no longer "hungry" and would start getting sloppy,greedy and would make mistakes.
I DO NOT, on the other hand trade to make money ,I trade to TRADE WELL! If I have made a good well planned trade in both the buying and the selling then the money is a byproduct of that trade.Read this area repeatedly and practice it religiously and it will serve you well...it has me.
Assume that your account is very small and you have ..let's say $2500 cash
Ok..you have no stock and $2500 cash so with this limitation 2 things are a MUST..EVERY BULLET MUST COUNT and PATIENCE is cultivated in your brain.
At this point I will say that this is the way I treat my account even now...as if I only had that $2500 !!Burn this into your thinking and you will reduce your bad trades and losses dramatically.
It is very rare that I take a loss of any significance and the percentage of bad trades I make is very low.Even Warren Buffet once said about 1 out of 8 calls turn out to be good calls and I certainly do a lot better than that but it is only because I have myself brainwashed into being "hungry" on every trade.
The greed factor is also cured by this type of thinking...If you are "hungry" you will take profits at a good profit point and not look back..you are just happy to add to that $2500 portfolio value that you started that trade with!
This type of thinking IS IMPERATIVE to me and I WILL NEVER.. NOT be hungry in my trading again.
When I first started years ago with $4000 I did quite well til I got up to around $11,000 I would start to backpeddle.After a few cycles of this I realized I was the problem because I was no longer "hungry" and would start getting sloppy,greedy and would make mistakes.
I DO NOT, on the other hand trade to make money ,I trade to TRADE WELL! If I have made a good well planned trade in both the buying and the selling then the money is a byproduct of that trade.Read this area repeatedly and practice it religiously and it will serve you well...it has me.
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
