Friday, January 19, 2007

Friday's Results

Got a taste of what Paper Cut Trading is like.

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Aargh, I already said yesterday to be more cautious today. But I didn't do anything to actively prevent today's losses.
I actually did follow my plan, and took small losses when the trade wasn't working out. But that wasn't the problem.

If there was one consolation, I did find out another peculiar bad habit of mine. I found out that I get fixated on a stock sometimes. Yesterday night, I was thinking about how I traded Forsys Metals. This also had the effect of planting a sub-conscious thought into my mind. So this morning, when things slowed down, and my mind had a chance to wander, I went straight to daytrading that stock again. However, after the morning run-up, the setups after that just weren't there, and I wound up taking a series of small losses. Each small loss was like getting a paper cut. I wasn't aware of this fixation until it was too late, and by then, I was in pain from a series of paper cuts.

I will need to clear my mind and be more conscious of preventing it from happening again the next time. The way for me to prevent this from happening is simply to keep my mind from wandering during the trading session.

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