trading emotion
To continue to improve as a trader, one critical part is to overcome the emotional part of the game. Would you sell winner too early? or hold the loser too long. It is a lot more difficult than that when it comes to real time trading. Discipline and emotional control is always a key. For example, I normally trade momentum. But when momentum stocks are not working too well, I may look at opportunity on lagger but I tend to oversize my position and refuse to stop loss just because my focus is to cover the loss, which the starting point is flawed at the beginning.
Understand the weakness and remind yourself that try not to engage something stupid and continues to grow as a trader.
Work hard together~
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It’s so much mental focus require to day trade due to the rapid changes. I was unable to capitalize on the move up from April to today in the general market. The switch from bearish to bullish and vise versa is partly why I simply could not hold on to winners. Since this rise in markets from April a lot of the price increase has come from after hours. I simply had a difficult time holding over nights. Still I look forward to the next trading session.
On the note of cutting winners to soon and holding losers too long I have learned to scale in rather than go all in. The zero commission from a lot of brokers has made this much more cost effective.
I did well on capturing the rebound in March. But I just lost badly by holding on a loser on Friday where I should cut loss way earlier.
I love your point that we should scale in the position depending on our P/L, scale in more when we are winning and exposure alot less when we are losing.
Let grow as a better trader together and take advantage in next big move.