Yesterday, I had another selling spree ... clearing!! It is with a view that I have made some mistakes along the way.



JTiasa : Followed Sal.Dali's recommendation on her, bought above RM9.50 last month, and was thinking to cut-loss if it goes below 20MA. I bought only 1k units ... but cutting yesterday at RM8.20 levels causing more than RM1.3k to my accounts.

So, the mistakes are obvious ... 1) following a recommendation of others blindly 2) did not cut-loss when I should have. These things happen when you thought it won't. When we were too optimistic and also take '1k units' as small ... in other words, we take our trades lightly, that is lack of discipline shown by novices(like me).

TSH is another stock I cleared her yesterday ... also only 1k units. The losses may be small ... but the mistakes done should not be taken lightly.

While I cleared Alam for small losses(it rebounded today!!) ... cleared Parkson and Benalec for profits, that could cover some losses. It is not really the amount we profit-loss that matter most, but .... the magnitude of the mistakes we have done. And at times, we still do these novice's mistakes. Yes, I do share my mistakes with my stock-watch group too as some are 'following' my buyings and could make some losses too.

In coming days, as I will be busy again(thinking of writing a book!!) ... I will not trade. I will keep sideway ... till my focus is back. And I will focus more in my HKSE's stocks.

Time frame : Many of times, a longer time frame is needed. This comes with experiences ... with lots of patience to wait and also with willingness to learn from mistakes. Hence, no trading plan is complete without clearly written TIME FRAME for our trades. This should be emphasised.

We all do mistakes. I do analyse my losses much more than my winnings. While we may be glad with some good trades, we should be critical on our mistakes. Lack of planning is always been an issue for most of us. Lack of focus too ... hence, I am clearing many of my holdings ... with an eye on HKSE, actually.

The trick is still ... get more good trades than bad ones. Cutting your losses small, to be able to see another day .... and let those profits to run. Yeah .... easier said than done, but it could be carried out!!

Going to HKSE ... there is no GE-fear there ... and it is cheaper there. It is just my opinion, we should be open-minded ... learning beyond our comfort zones.

Remember, everyone will make mistakes. It is a matter on how we analyse our mistakes, in order to improve ourselves. Trading is a lonely journey. If you have a group ... focusing in similar points, we could alert each other when we 'sway' of the lines.

Note : I am compiling 'common mistakes' traders do. If any of readers want to share their opinions or experiences ... do place a comment. I will not expose any identities. The purpose is to share with many newbies what we have done wrongly, so that those newbies will cultivate good trading and investing habits.

I view sharing mistakes as good. I dont see anything wrong by saying we done mistakes in our trading our anything we venture, trying to do. Keep the spirit of sharing and learning!!

TEH