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My biggest trading mistake of the year

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Not applicable
My trading system is simple. Maximum exposure for the rallies, minimum for the downtrends. So by June, I was left with a single holding. Aspen. By my system's definition, that was a minimum holding, which was already 10% in the black. You always want to have some skin in the game, to catch the rallies. And then came my blunder. I sold out. Taking a loss is easy, losing out on profits is the real blunder because it means you were not true to your system. I will print out the chart and stick it on my wall, because as far as mistakes go it was a real doozie.
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13 REPLIES 13
royandroy
Contributor
Yeah ... once I've taken profits and have cash sitting in my account I'm constantly thinking 'hey! This money's not in the game! It could be earning something.' Takes iron discipline to hold on and wait for the right opportunity.
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SimonPB
Valued Contributor
yip, selling at profit hardest part of trading and selling too soont he biggest crime .. sure nobody went broke taking a profit, but they also didnae make a truck load of cash ..
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sponono
Super Contributor
bought WHL at R30 after watching it for weeks and then took a small loss. Could be 67% up by now. The chart is now stuck on my buttocks, my wall, my windsreen, my son's face, my computer screen, my glasses, my d.....ck as reminder: use a stop loss otherwise do nothing.
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kwagga
Super Contributor
A trading mistake I often make is getting out too soon, and once I'm out immediately looking for exposure somewhere else. I'm always figting time. Lacking patience is my biggest weakness. I enjoy trading way too much. I almost enjoy the trade more than the profit - how sick is that.
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Russ
Super Contributor
You even stuck it on the wall?
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Not applicable
My worst tactic is moving the stop up too close as the profit grows in an effort to preserve as much as possible on the pull back. Get sold out on a little noise and lose the rest of the rally every time. You'd think I'd have learned by now . . .
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sponono
Super Contributor
....yeah everwhere with a message in CAPITAL LETTERS: EXIT ONLY ON STOP LOSS DOM KOP!!!!!
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Not applicable
To be clear though, I always take profit. I don't set trailing stops or anything like that. Exit at the top is my motto. But my rules for doing that are a bit more complex.
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Rams
Super Contributor
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Rams
Super Contributor
Well, sponono, if you stuck it on your d..ck, dont screw up again, it will become a BIG mistake....eh eh eh
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sponono
Super Contributor
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Rams
Super Contributor
Anyway, my strategy is to take profits in thirds, the last third exiting at a break-even stop loss.. And then at an incremental profit stop loss target.... From : Trading in the Zone.
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Not applicable
Mines has been selling my CPL at the beginning of this year for a 5% profit on exposure. It is now 16% higher. Bear in mind that the gearing on CPL was 118 times at the beginning of this year.
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