They say on the scorecard in golf that there’s not enough room to draw a picture, only a number. It’s true. Any golfer knows the feeling of snaking in a 30-foot putt for par after struggling the entire hole, but the end result is the same as if you had hit the green in regulation and 2-putted. Trading can leave us feeling the same way. Sometimes you haven’t stopped out yet but you’re stuck in a losing position just looking forward to the next trade when all of a sudden something good happens. Maybe it’s a market reversal or a headline pertaining to your stock which gives your trade the push it needed. Take what lessons you can from the trade, and move on to the next one. Give each hole (trade) your very best and look to learn something from it, but don’t overanalyze it. The end result is a profit or a loss, so take it and move on. You’re better off putting more analysis into a month’s worth of trading than looking at every individual effort under the microscope.
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President, The Stock Bandit, Inc.
[tags]Golf, Scorecard, Par, Trading, Trading Psychology[/tags]