Manage what is under your control

Manage what is under your control. If we do damn good job of that rest is easy.
What is under your control in a trade.

Which stock to buy

is it under your control?

How much to buy

is it under your control?

Where to buy

is it under your control?

Where to put stop

is it under your control?

Where to exit

is it under your control?

How many trades to do

is it under your control?

Are you doing a good job of managing these things.

1 comment:

StrategyTrader said...

I like your style Pradeep. I really do. Let me tell you my story briefly. I can learn so much from your blog and strangely, what I am trying is step 1 of the investing cycle, not step 54.

1. I have profitable systems which I have backtested 20 years+. No curve fitting
2. I lose money still
3. Why? Because I continuously over trade and when I do win, I get blown out by taking trades that are outside my systems
4. I set out and say I need to ring fence capital to allow for drawdown on each given system. 5. X Weeks down the road, I don't follow the rule book and inevitably get blown out through either overtrading or reading blogs and being sucked into fanfair

I need to break this cycle, stop procastinating and just remember that its all under my control. Friday 11th was the first day in months I was slightly more in control than before. Still not fully in that I am overstaked but before, if I had a few £k capital free margin, I would take another trade. This time, I have said I cannot afford it because I am undercapitalised on my open trade. This in itself is not right but I guess 2 wrongs would not make a right.

I dont know why I am opening up to you here and saying all this. Trading is lonely and I need to sort out the basics.

Next week my objective is simply to have the week as being a "perfect" week. Not in terms of whether I make a profit or not. This is I accept a roller coaster. Just to follow the rules and not create unnecessary stress

It is ALL under my control (apart from how the market moves which is a no control zone for everyone). What I can control, I have to control properly

Keep up the good work Pradeep