I am able to lose less now. Yes, when I started my journey, I lost more. I had no control on how to take hold of my losses. When I look back now and follow my past 8 months, I feel that I am much more decisive these days. I find that I am able to get out of a trade when I want to, as compare to what I did earlier. Initially, I waited for things to turn in my favour, instead of getting out of a trade and cutting my losses.
Now, I am in a zone where discipline has become my forte. Importantly, I am trading much less. I have learnt the significance of stop-losses.
However, I am yet to earn profits consistently. I earn one day, but I lose another day. I have been identifying one very crucial aspect of trading, which is the emotional attachment. I now understand that I have to shut my association with emotions while trading. This is what will help me to take losses in my stride, and trade the next day without the baggage of my past trade, which is indeed very crucial.
The other thing that I have been observing is the fact that I am able to stick to my budget. I have fixed my monthly loss limit, and I don’t allow my trading loses to exceed that limit. I now find that my losses are much below that limit, which is amazing. When losses increase on a particular day, I am able to reduce my position size willingly for a certain period of time or days.
If I have to point out my two biggest achievement over the last 8 months, then it has to be my 1) ability to reduce position size and 2) stop trading whenever I want to. I firmly believe that to start winning profits in trading, one has to learn and train one’s own mind to curb losses. If a person doesn’t inculcate the capacity to control losses, he will never be able to make profits because at some point of time, he will eventually end up losing all he is making.
The other smart choice I made was to shift to a discount brokerage firm. I don’t intend to name the firm in this post. Discount brokerage firm definitely helps you save money when you are trading in small position sizes. I also have an account with full service brokerage institution; still I prefer trading on discount brokerage site more often.