Dramatic and emotional trading experiences tend to be negative. Pride is a great banana peel, as are hope, fear, and greed. My biggest slip-ups occurred shortly after I got emotionally involved with positions.”
I don’t buy what I like, I buy what I can sell later at higher price.
Unless you are Buffet and capable to accumulate enough shares to impact management, your shares are just pieces of paper and you should treat them like such.
If you can’t take a small loss, sooner or later you will take the mother of all losses.”
“I spend my day trying to make myself as happy and relaxed as I can be. If I have positions going against me, I get right out; if they are going for me, I keep them.”
Paul Tudor Jones
A loss never bothers me after I take it. I forget it overnight. But being wrong – not taking the loss – that is what does damage to the pocketbook and to the soul.”
“There is time to go long, time to go short and time to go fishing.”
“The single most important advice I can give anybody is: Learn from your mistakes. That is the only way to become a successful trader.”
Make it a habit to review all your trades once a month. Notice where you entered and ask yourself why did you initiated such a position. What was the underlying reason behind your move. Was it pure emotional reaction or strictly following a plan. What were your exit rules and how well did they help you to preserve capital and maximize profits. No other exersize will teach you more about your weaknesses and strengths.