So what do you guys do to improve your trading game? I've been using a notebook and keeping track of my trades and writing down what worked and what didn't, as well as coming up with rules to follow to stop myself from repeating mistakes I see more than once.
For example, I've discovered that my biggest weakness is that my prime animal isn't a bear or a bull, it's a pig. I've missed the direction of a trade exactly three times in the last year, but I've lost money on dozens of trades that I went from green to red on because I refused to accept that the top was in. This had led to realized losses of over $7k – small potatoes to some of you, big potatoes to others. And remember, at one point, I was up on basically every single one of those trades, so the losses counting unrealized and never taken gains are much, much worse.
I've realized the reason for this is that while the trade is still open, I feel like I'm proving to myself and the world that I'm smart enough to figure out something, and closing the trade by taking profit means I've given up on my idea or admitted it's wrong – nonsensical, I know, but you've got to figure out why you're doing foolish behaviors if you want to stop them.
Since then I've started to set stop sales and it's really helped me to take profits and improve my skills (and portfolio), because once I'm no longer emotionally invested in being "right" as I've already taken profit I can much more easily analyze how the equity or trend is doing going forwards, and whether or not it's something I'm happy staying out of or if I want to get back into it at the current price.
My next step is figuring out when to abandon losing positions instead of riding them to zero and starting to make successful hedges on my positions.
How about you? What are your biggest weaknesses and how are you working to address them and improve? Share and help the class, we're all trying to make money here, and we're all admitted idiots using fake names, plus it's unlikely your fuckups will be worse than the embarrassing shit I've already posted.