Respecting this game!

The areas I have learned that negatively affected me the most were......

1. Confidence
2. Fear
3.Discipline
5.Emotions -second guessing

I did not think I was smart enough, so I had very limited confidence. I talked a big game, but inside, I lacked the confidence it takes to become a good trader. When you convince yourself that the terminology is too advanced, or this work is for the extremely smart and world's most intelligent, you have defeated yourself before you started.

I was scared to take the chance. I knew if I lost, I was going to get that look from the wife, so when I started trading, I was trading in fear the entire period of time. Having successes, helped overcome fear. Having money to trade that is not designated for household necessities or emergency savings makes trading much more comfortable and enjoyable. I would many times place a trade, but shortly after entering, it would have a very, very small pull back, so based on my level of fear, I exited the trade. What happens? Yes, the stock turns and goes back in your direction for several bars. I developed a loss tolerance amount. Some say, do not look at your account. Sheeeeees.... I needed to see what was going on when the market was moving. It is tough to ask a person with very little funds to not pay attention to their account. I started off with a loss tolerance of $100. My trades were from $1000 to $1200. I had $2500 in my account. If at anytime, I saw a loss of $100, I was bailing. I got sick and felt dumb, but I was out. Now if I feel a need to bail, it is more relative to levels of support or resistance being compromised or broken. I find that those areas are about where I am comfortable with a loss (never really comfortable with a loss).

Develop a plan and stick to it-period! My plan works for me. I have a checklist that I must complete before ever entering a trade. If the indicator is not checked, it is not a trade, and I wait or move on to another possibility. This written plan is the nugget or map to my style of trading. My plan is detailed and clear. It is my blueprint to what I look for in every trade I make. When and why I enter. What keeps me in the trade What signals triggers my interest in exiting. I have gotten to a point where I do not deviate from the plan very much. When I do, I typically either have a small loss or come very close. This is by far one of the most important components to this discipline thing. Stay true to your plan. If it is not working well, tweak it, ask questions, and make adjustments. If it is not in my plan, it is not a trade.

Controlling my emotions has always been a tough one for me. Once I got this part under control, the rest fell in place. I go into trades very under control with no major emotions. I know my plan will work-if I followed all the rules. Unfortunately, when I exit the trade, I am full of emotions. I can act a fool because once I am out, I am not going back in that day, so I am closing up shop. Today, I had a hard time controlling my emotions after the LNKD trade. After I exited the trade, I abruptly left work, went home, closed and locked all the doors, closed the blinds and started to panic. I continued to peep out of blinds, waiting for someone to come and knock on my door, asking me to give them their money back. Well, someone did knock. His name was UNCLE SAM!

Have a good night!

That darn uncle that everyone wishes they could kick out of their family, lol.

Around our house we call him Uncle Sugar.