So, that’s it. Yet another blow – two actually – to add to my trading journey. My broker informed me that they’re closing down.
“I could kick myself!”
I don’t know how often I have said this to myself in the last few months.
Lately I’ve been busy with other things. So, trading took a backseat. I have been trying to keep a hand in, though, and that might have been a mistake.
A friend recently recommended this book. It captivated me because it takes an interesting approach to mind management. Even though this book does not specifically target trading psychology, I think that it is very useful for traders because it gives you tools to control your emotions and mindset.
Due to two disappointing trades recently I started thinking more about exits and returns. Are 3% or 4% a good return per trade? Should I aim higher, risk having to stay in a trade for longer and potentially suffer through a temporary downturn or eventual loss? What is the effect of trading fees on my returns?
Proper risk management is still a bit of a mystery to me. I have come across bits and pieces of advice talking about stop losses, probabilities, position sizing etc. So far, I have only really practised honouring my stops instead of letting losers run away with my money.
This is the second time in these first few months of trading that I am forcing myself to take a break. OK, it’s generally time to unwind. It’s summer – time to kick back a little and go for a wee holiday.
They say, you shouldn’t trade when your head is not in the right place. I have closed out almost all of my real and paper trades; just so that I can stay away from it all with a peaceful mind.
And then what?