>>I'm trying to develop a skill where I can trade smarter, rather than more often
Yea. Me too. I am not a very good trader, despite my very solid gains. I find myself most upset with myself when I end up selling things too early. A few examples in the last month include CNAM, PUDA, and CBEH.
I find that if I am just patient with big money in undervalued stocks, I do my best. Or if I allow a momo stock to just run, I do very well. I often find myself getting out of momo stocks a little earlier than I should of in hindsight.
A couple trading quotes that stick with me that I continue to tell myself are the following:
- Let stocks that are running, run.
- Have a price in mind that you want to sell at before you buy and do not sell until something fundamentally changes that belief.
Unfortunately, one may say that these concepts are contradictory and in part that is the battle I struggle with.
The biggest problem with my new career as a trader is that I want to trade. After all, it is not much fun to just watch. Yet, my biggest gains ever to date were when I did not touch my portfolio for a month - holding only 5 stocks with big money in each. All 5 I knew had 50%+ written all over them. Waiting for that eventuality proved to be well worth it.
Because I have an extensive China watch list, I often find myself compelled to jump into quality stocks trading at a bargain. Invariably, however, too much of this means that I end up selling some of the gems already within my portfolio that may be having a difficult week, going through consolidation, etc. By the time my new stock is ready to move, my old one left the station. I do not consider this to be good trading.
I love my new career, but I know I need to and can get better. Often, that means just leaving things alone. But does that make me a trader or an investor? Does that mean this is a career or just a passion/hobby? Smiling in Hong Kong....Justin
