A nagging question has been bouncing around in my head for the last few weeks.
I have been trading patterns and trying to enter/exit when I thought it made sense. But the question that has been bothering me is - why?
My entries are based on me see something that looks trade-able and simply going for it. I am not exactly sure how to describe it, but nearly every entry is preceded by a panicky 'Don't think, just trade' type of feeling. My trade management could be characterized as a 'sitting on pins and needles session'. Exits are marked by indecision and doubt.
This begs the question - why am I entering/managing/exiting? Sure, I can see patterns and signals - but what does it all mean?
The question has been floating in the back of my head while putting together every blog entry over the last few weeks. I haven't articulated the question though and I wasn't coming up with any answers.
This morning I spent some time reading Scott's concentration lesson recommendation before I went out for a stroll (incredible AZ fall morning BTW) and decided to concentrate on the question. I probably spent about 20 minutes just thinking about it - trying to make some connection between patterns/signals and trades.
I came up with an answer: All that I am trying to do is sell when a stock runs out of buyers, and buy when a stock runs out of sellers.
Heh. Hard to believe it took me 20 minutes to remember that.
But - I think it was a good exercise. I have been concentrating so hard on the technicalities that I lost sight of the big picture.
So - I made it a point today to keep that as my focus. And it worked out very well. So well that I am done trading for the day.
I will post the trades and ruminate some more later. Trade well.
Sounds like today, at last, you have discovered the tip of the iceberg of the emotions that rule you. This first objective realization of that is what you can now refer back to and build on. Its a starting point. When you can look down at yourself
ReplyDeletewithout ego and analyze your behaviour in this manner and decide to act not with emotions but with objectivity , then your are on your way. Continued, intense practice is sure to be involved though. It takes hard work to be able to do something simple like trading especially for someone like you who has to unlearn decades of his engineer training.
Well said - thanks for the input! Here's hoping the reference point stays fresh.
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