The Do’s and Don’ts of trading

Today has been fairly quiet on the trading front. No new trades although I do have half an eye on one stock. Beazley. The super trend indicator has just reversed to an upward move and it would seem there is potentially some support around 109 but I am not yet convinced it would be a good trade. Therefore I have decided to wait.  What am I waiting for? well that’s a good question, I am waiting for the price to pull back a little closer to the support price before I make the decision to enter the trade. This may be the wrong thing to do but who knows.

That’s one thing that I now definitely have the hang of. I am not afraid to miss out. I know that there will be another opportunity that comes along and who knows it could work out even better that the one that got away. It’s taken me a long time to get to this point in my trading career. I have traded for trading sake and I’ve made and lost money because of it(mostly lost). Now I am master of my own decisions. It’s funny, I remember when I started trading and I was reading all about the do’s and don’ts of trading. One of them was don’t trade for trading sake. I read it agreed that it was good advice and still went out and did the complete opposite of what it said. I think it may be path of the course that you have to make your own mistakes and learn from them, but if only one person who reads this learns from my mistake then it’s worth me writing about it.

Thanks to Tony for his comment over on my new blog. I think Tony may be the first to leave a comment through the new system, well he’s at least the first non-spam comment that I have received. Hopefully you found adding the comment ok. If you have any problems with the new system please let me know.

I think it’s a fair comment about using guaranteed stop orders for a big bet on a single market. I tried to make the same point in my slippage section of my beginners guide although I think Tony has probably done a better job of explaining it. Still we live and learn, I guess it shows the difference between an accomplished author such as Tony and a software engineer such as myself.

You can read this same post over on my new blog here. You can leave a comment here or there but I will only be posting on the new blog after this week.