Hey, I made money on $MJNA, Yay!!! (market gives)
Ouch! I lost money on $ETRM. (market takes)
And that is the way the market works!
The trick is to hold on to the gain the market gives you without letting the market takes back too much. To do that, we need to wrestle with our greed. Yes, you heard me. By wrestling with greed, you are actually taking action to prevent greed from dominating your trading decision. If you don’t wrestle with your greed, then you are allowing greed to dictate your trading decision which oftentimes will decimate your portfolio.
There were moments in the last two days when I wanted to add to my $ETRM position; but a voice in the back of my head said, “Hey, I think you’ve enough. Don’t let your greed control you. This trade is a gambling bet waiting on release of data. If you want to gamble big, go to Vegas; at least, they comp you with free room…”
Thanks goodness I backed off. The fact that I backed off meant I wrestled with greed.
If $ETRM still trades at the after hour price of $1.44; my loss here almost offsets my gain in $MJNA- market gives, market takes.
In the overall scheme of thing, I consider myself lucky.
Categories: Trading philosophies and thoughts