The markets just closed and I just wrapped up my 4th blow up session in 3 years. It’s embarrassing, sad, and angering. I know exactly what caused it. Heck, I even knew going in to trading today what could potentially lead to my demise. Yet, I ignored all that and went ahead and broke the rules.
I’ve realized I’m an optimist when it comes to lots of things in life. I see potential in all sorts of things like business ideas, people, deals, and yes, stock symbols. Optimism is great when it serves part of a pre-defined plan or within the context of dreaming. However, it is what kills accounts both small and large when left unchecked.
I fall prey to my optimism when looking at random stocks, charts, etc. That’s why I finally cancelled my Investors Live subscription. I just jump from ticker to ticker completely driven by emotion. And I may have a few winners, but I ALWAYS end up losing. ALWAYS. I’ve found that I’m not ready to take part in chat rooms for this very reason.
I want to remember how I feel right now. And how I felt the other 3 times I was in this same position. I will NEVER be successful at trading if I continue like I am now.
Even a day later (I rambled through part of this then left it for a day), I’m so extremely frustrated at myself, I can barely stand it. I’m not mad at circumstances, the people in the chat room whose ideas I followed blindly. It’s not any of their fault. I have only one person to blame…ME.
I want to learn from this latest round of stupidity and learn to trade reliably and look for patterns. To trade with a plan and have the discipline to follow rules designed to protect me from myself and overly optimistic mindset when it comes to stocks.
Bottom line…Need to come to the table with a strategy and know what you’re going to focus on for the day. Traders like me need more structure like that.
I WILL be successful and get this figured out. I WILL develop the discipline to not only recognize my weaknesses, but put rules in place to help me avoid the losses that keep me from being part of the 10% of traders that actually make money trading.