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. (more…)