Home > Beginner education > $ Debbie: When is a fighter’s spirit not helpful?

$ Debbie: When is a fighter’s spirit not helpful?

As a developing trader who has made great strides over the past year, I am constantly putting myself under a micoscope in order to become better. One of the worst places to be, in one’s trading, is at the palce where you know the progress you have made, you know you have got the “it” that it takes to be successful in the business, and you know its just a matter of time before dreams are realized.

Many people would say that this is a great place to be. Maybe it is for many; however, for me it just smells of medioctiry at best. At the same time, add in  my fighter’s spirit and a will that just will not give up, and I  have a potential recipe for disaster in trading. 

This is how I handle me.  Since I know myself, I start by  being honest  with myself and I recognize who I am, what my personality type is, and  what my strengths and weaknesses are. I also recognize that I have a competative nature which leads me to the deadly thinking of  “other people are making money today so why not me”? One example is, I hate and have a hard time with being net negative on the day (especially if its by more than pocket change). When I am down on the day, I tend to keep going until I am at least flat on the day. Most days this may work; however, there is always a day once in awhile that it does not work and I don’t give in so to speak.

This leads me to overtrading on days when it is not warrented by being too active . I realize that I tend to lose sight of the fact that one must be able to take the small loss, sit back, and be glad that it is the best possible outcome of that particular day. I also realize that this creeps up on me and I dont even realize it sometimes.

A fighter’s spirit is not helpful in difficult, stubborn, range bound markets. Today, in hindsite, I should not have traded  in the afternoon. It simply was not worth it despite the fact that the spy eventually made new highs and continued and there was some movement in some stocks in my basket. Also, I realized that I started to do something that I have not done for a long time—I am switching between my stocks too much searching for something that is not there or if it appears to be there it is most likely a “headfake” at best.

The result of my mistake today is a negative P/L for the month. Now the good thing is that I did not dig a big hole and I was not stopped out for the day (as in the past that would have been the case).

More importantly is my solution. I am reminding myself of 3 things:

1. Do not be active (in any sense of the word active) in a range bound market and stock. I am not at the point that I can do that well yet and that is ok.

2. Severely limit or do not take test trades.

3. Wait….WAit…..WAIT for the opportunity that says “I am here without a doudt”. Trade a trending stock and better yet a trending stock in a trending market.


Pete keeps saying. “We are looking for the best trades not every trade” ! 

Another day, another reflection, and another lesson…..better trades ahead.


Profitable trading all!



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