July 22, 2008

culturally learned behaviour that results in an unsuccesfull trading experience

This is from Mark Douglas' book : The Disciplined Trader

1. Refusing to define a loss
2. Not liquidating a losing trade, even after you acknwledged the diminishing trade potential
3. Gettin' locked into a specific opinion or belief
4. Focusing on price and the monetary value of a trade
5. Revenge-trading
6. Not reversing your position even when you clearly sense major change
7. Not following the rules of your trading system
8. Finding yourself immobilized in executing what you planned or what you felt doing.
9. Not acting on your instincts.
10. Establishing a consistent pattern of success over a period of time and then giving your profits to the market in one or two trades.