Yesterday I released another post in my series on the importance of monitoring positions. In todays post, I’m going to break down how you can find the silver linings of a loss and I’ll show you how I avoided another potential pitfall.
How To Win From Losers
I believe that there are ways to win from losers, as long as you’re honest with yourself and committed to back testing. Here are the key elements of back testing that can ensure you always win from losers:
- Stop guessing! Instead, commit to a data driven approach
- Document! When a stock goes against you, review it for any fundamental issues you might have overlooked pre trade.
- Examine market conditions with an eye towards what may have contributed to the negative move
- Back test your trading system for the purpose of locating its weaknesses
- If a weakness is discovered, document how you will you counter it
- Always retain the right to change your mind. it’s the only way you’ll learn from your mistakes.
This content is restricted to site members. If you are an existing user, please log in. New users may register below for FREE.