Iactually violated my trading plan a bit and agreed with BC's technical short point of 1295.
When you violate you plan, if you win, you are lucky. But if you lose.... there is no reason to tell yourself why you violated your own plan. But if you follow the plan and still lost, and have acted according to plan.... it means you traded well, and things didn;t happen as hoped.
So follow plan and not violate it.
Anyway, shorted another 8 at opening, price was better than yesterday close, but unfortunately KLCI cross above price, so bought back and cut loss.
Rule #3: Add ONLY to a winning position.
This case, I was shorting, and the next shorting price MUST be lower than my first short price.
You don't want to short high, you want to sell lower, and lower and lower. That is to prevent you from throwing good money after bad, and you will also win on every addition.
Applied Rule#2 today too! Rule #2 Never forget Rule#1: Still using cut loss as your main weapon. Cut loss immediately when you are wrong.
Each addition you add on to your position is considered a new group of money, and they must be regarded as such. So as soon as that group of money is losing, cut loss immediately.
Follow Rules and Trade to trade well! And the profits will take care of itself. Manage your losses well!
Since transaction was not done, it is not worth talking about. Next day la.
ReplyDeleteIactually violated my trading plan a bit and agreed with BC's technical short point of 1295.
ReplyDeleteWhen you violate you plan, if you win, you are lucky.
But if you lose.... there is no reason to tell yourself why you violated your own plan.
But if you follow the plan and still lost, and have acted according to plan.... it means you traded well, and things didn;t happen as hoped.
So follow plan and not violate it.
Anyway, shorted another 8 at opening, price was better than yesterday close, but unfortunately KLCI cross above price, so bought back and cut loss.
Rule #3:
Add ONLY to a winning position.
This case, I was shorting, and the next shorting price MUST be lower than my first short price.
You don't want to short high, you want to sell lower, and lower and lower. That is to prevent you from throwing good money after bad, and you will also win on every addition.
Applied Rule#2 today too!
Rule #2 Never forget Rule#1:
Still using cut loss as your main weapon. Cut loss immediately when you are wrong.
Each addition you add on to your position is considered a new group of money, and they must be regarded as such. So as soon as that group of money is losing, cut loss immediately.
Follow Rules and Trade to trade well! And the profits will take care of itself. Manage your losses well!