Wednesday, 12 August 2009
I was driving on the motorway on the M25, you guessed it, in traffic. I was in a slowly moving queue for a while out of the three lanes, and thought, hey this isn't moving anywhere! So after I sat in the queue for a bit I jumped in the next lane where it appeared to be moving faster. Low and behold, as soon as I got in the next lane it slowed down and the queue I was in started moving again. Of course this is a school boy error, I knew the rule of thumb that you're better off staying in the same lane; but I couldn't help it because I was sure it would work out. It reminded me of trading, you see a great move - the price is going down, and it looks like a sure fire thing to carry on going. The minute you jump on it, bang, it goes the other way. It's happened to me many-a-times, and a slap on the knee to remind me not to do it again can only help so much! Learn from mistakes and hopefully next time you see the same thing happen, you'll think twice before entering the market for what you thought was a quick buck. Jumping on trends that have already been going for a while will eventually stop just like the traffic in the lane did; it will go the other way and you will lose out; the measure being money rather than time!
My Awareness Development website should be completed soon, and I can't wait to get it to everyone. There won't be much there except a couple of articles; I plan to write 1-2 articles a week. It's all free, exploring the fascinating world of emotions and thoughts, how we can develop awareness and in general why we do certain things that seem rational, but are in fact irrational after a closer look. How does it relate to trading? - The more you are in control of your emotions, the better trader you can become. This comes through awareness; awareness of your thoughts which fire all these emotions.
Going back to my trading. Yesterday I had a sloppy day, I wasn't focused at all, so after a couple of races I quit; I don't do this too often because it's failing. Anyway I went back home and strolled around the greenery of Buckinghamshire, it was very relaxing and I'm glad I did it - I was very focused today.