Home > Apprentice Trader Journals > $Deb Says, What does increased responsibility mean in trading?

$Deb Says, What does increased responsibility mean in trading?

How is it that one can have it so together in one month and then start the next month out failing miserably? The answer……Poor Judgment!

I must revisit psychology here as it is natural (and works in all other professions except in trading) to think that with increased responsibility one should be adjusting and doing more. After being given more responsibility in my trading, I fell into this trap! The old adage, “If it’s not broken don’t fix it”, applies here. Increased responsibility, in trading, does now mean increased work, change in “position”, and adjustments of what one does. Unlike other professions getting “promoted” in trading means continue to do what works over and over again.

This is what I am going to do to keep my judgment keen:

It is simple; I will go back to what was working when I did not have more responsibility.

I did the following and will do the following:

1. Get a clear read on the type of trading day it is.

2. Manage money and risk according to what kind of day it is.

3. Put out a “feeler” trade with low share size and when it proves itself then build a position.

4. Focus on the stock that I know best and only deviate from it when there is something very obvious to do in another stock on my watch list.

5. Do not deviate from what is working!!

Another day and another lesson learned here!

 

Debbie

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  1. September 2, 2009 at 8:58 pm

    We have all been there and done that too deb…it’s called paying for information and consider it an expense in your trading business. The important thing is to keep your expenses low so that you can stay in business long enough to ring the register when it’s obvious.

    • September 2, 2009 at 9:28 pm

      Thanks DC! You are on point. It seems that at every step in this process of developing myslef as a professional trader there are these lessons that one must pay for. As long as lessons are learned and expenses kept under control then staying in business is not a problem. I have every intention of being around for a long time. This is a small bump that is nothing more than an annoyance.I have been taught and continue to be mentored by the best.

      Debbie

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