Sunday, June 28, 2009

Mini Crash

I just had the worst 2 weeks of my career as a trader.

From euphoria down to near depression just in a matter of a month.

How could have that happened? How could have I let that happen?

I was up and then I am down. Roller coaster it is.

I can only imagine how other traders felt when the market was at its worst. From the peak of the bull market down to the March 6 bottom - unbelievable.

I lost 16% in 2 weeks. What if I had started at the peak of the market? I might have wiped out my whole account.

I need to be more disciplined. I've been saying that since I first started but I still haven't changed significantly. Maybe that's the reason why people say the learning curve of a trader approaches its ceiling in about 5 years. It takes that long to master ones emotions, and to gain discipline. Or, it takes that long to become a machine.

Lessons:
1. You can't control the market. You can only control your risk.
2. When you feel like you "know" what you are doing. Stop and evaluate. Bring down your size and do so until you feel like it's "hard" again.
3. LEARN WHEN TO STOP TRADING. It's not just about churning; it's also about preserving one's capital.