Читать книгу The Trader's Pendulum - Samuels Jody - Страница 17

From the start, Fred had entered into stock trading by a chance encounter with his ex-colleague at the local health club. It was the wonderful outlook of the life of a day trader that lured him into the day-trading sphere. No detailed forethoughts and contingency plan were made before he made the leap:

● He did not plan his trading education.

● He was blinded by the potential rewards of a successful trading career but did not consider the risks.

● His decision to trade was reactive (to his job loss) and not aligned with his skills or personality.

In essence, he entered this career for the sheer reason that he was convinced by the story that his ex-colleague had spun.

Fred had also not tested his system thoroughly before he relied on it for income. He had traded it with his paper trading account, but did not start small in trading real cash to gain confidence, so he did not know what to expect when the technical and psychological complications of trading live cropped up.

Worse, he allowed his emotions to get the better of him when he traded. A few losses in the beginning aroused his doubt about his system (although it had a win/loss ratio of 75 percent in paper trading). There might indeed be some flaws in the system, but he was not experienced enough to effectively detect and then fix them, because he did not have any strategy to track his trades and find out where the “leakage” was.

He thought he was lacking some secret trading techniques or a more robust trading system, so he devoted more time, money, and effort to finding them. Fred was setting himself up to fail.