Tuesday, October 19, 2010

Personality Issue

We have all different personalities. My trading buddies told me that his weakness came from the feeling of overbought or oversold market. He is afraid of entering the trade if the price already moved too far (In His Opinion). If he have an upside bias, he want to buy at the lowest price possible and vice versa. If he had those position, he may ride it only small ticks before he bailed out. Already pick the top/bottom but exit very early.

My other former trading buddy also like to enter at perfect price and hold into it until he burned out. If he missed the trade, he convinced himself that actually he want to take it there but it's too late. Emotional pittfall and delusional trade.

Mine have problem with not letting the day-loss (not loss per trade)until it's too deep to comeback for the day. Sometimes risking far too many than the expected outcome. Profit taking too early also one of my pitfall.

We all have our own demon to conquer.

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