Weekly Lessons

Positions

February 24, 2019

Sa market daw it’s either ur a buyer (buying position) or ur a seller (selling position). It’s not just either you buy or sell though. Meron din tinatawag na Cash Position. For newbies na parang na addict na sa action ng market the worse thing is a holiday or a long weekend. They seemed to developed the thrill seeking attitude. Yung hinahanap na ng katawan yung aksyon sa mercado. It’s not jut newbies even mga may experience din. The thrill of being right and getting rewarded with profit is soooo amazing! Yes, yes it is. Pero experience will tell you na trying to trade for trading’s sake would burn ur account sa long run. Right now i have no position sa market. Why? Wala akong nakitang set up na maganda for me. I won’t buy a stock just because friday or just because grabe na ang bagsak since last week. I wait for good set ups. Mga set up na familiar sakin. I use to trade a lot when i was starting pa lang. A few losing years will correct that but if you want na maiwasan yun here is an advice. Sa mga nag oovertrade i would say avoide top gainers/top losers for 6 months or a year. Top gainers nag cacause ng Fomo lagi yan. Yung top loser naman ngcacause ng “baka magbounce to bukas” na thinking. If nag oovertrade ka try taking a day off every after one trade. Sa mga gusto naman malaman if nag oover trade na ba sila here is a simple quiz.

Take This Quiz
Are you an overtrader? Here’s a quick quiz to help identify common overtrading blunders:

1. Are you a trading thrill seeker?
2. Do you jump from one trading strategy to another?
3. Are commissions eating up your profits?
4. Are you a revenge trader?
5. Do you exit a trade immediately after it becomes profitable?

If yes sagot mo sa lahat then you are overtrading.

1. If you get an internal jolt every time you enter a trade, you may be a trading thrill seeker. Successful traders often admit that profitable trading and investing is boring, but after all, this isn’t a carnival. Identify your setup, enter your order, set your stop-loss, and take your profit or loss. Boom, do it again. Looking for a joy ride? Find a roller coaster.

2. This is a lesson in less is more. Successful traders focus on one approach, become an expert, and stick to it.

3.Tsk, tsk. You don’t need a big pile of trades to be profitable. This may be a sign you are putting on too many trades and not letting your profits accumulate.

4. Although trading has sometimes been called legalized gambling, the fact is, you’re not in a casino. Don’t fall into the trap of reacting to a trading loss with an immediate desire to make back the cash—that can lead to sloppy mistakes. As Frank Sinatra once said, “The best revenge is massive success.” You won’t get there by being a revenge trader.

5. Good risk management is paramount for any trader or investor, and that includes letting your profits run. No matter what your trading approach, develop a risk/reward ratio that you are comfortable with.

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