The first 8 months in the stock market was different from the last 4 months. In terms of my experiences and my approach towards the trade, both periods were different, and at times opposite to each other. I was more inclined to lower my losses in the first 6 months in particular, and then I was able to control my losses somewhat by the end of the 8th month. When I was convinced that I am now able to control my losses I decided to earn out of my trades.
I feel that to make profits in trading one has to be a little more offensive. Since I was inclined to cut only the losses my whole trading style had become defensive. My perception from the entry to the exit was more to get out of the trade at the earliest. I will try to book a small profit at the slightest opportunity, which didn’t help me in anyway.
However, the biggest improvement in my journey is the fact that I am now able to find the right entry point in the trade and generate profit. Though, I am not doing it more often is a different issue altogether. I think I can enter a trade at the right time is enough to give me that confidence to believe in myself that I can choose the right time for a profit. This thought process has changed my approach. I believe I am now more in control of my trade.
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The other thing I have learnt is to get out of a trade as soon as I spot that the trade will not give me any profits further. It means no matter where I am, I could be in a profitable situation, or in a losing situation, I am now getting out of a trade when I feel this trade is not leading me anywhere. There is one other aspect here – I don’t regret even if after exiting my position, the stock moves to a profitable point. This probably makes me ready and keeps me fresh for the next trade.
I read a lot on trading experiences shared by fellow traders. It’s very difficult to find a winning formula. At the end of my first year, I arrived to a conclusion that one must keep implementing the right process. What is the right process?
My own strategy in this case is the right process. I am not sure if this is the right process for others. I have made some kind of observation and I try to follow it because it gives me results. Though, not always, yet, it gives me some profit. I now aim to put my experiences and my knowledge to best use to make profitable trades. I hope in times to come that will help me become a successful trader.