We're getting approximately that fourth dimension when traders laid about thinking nigh their goals for the coming year. Ideally, those should emerge from reflection nigh the yr only passed, the progress that's been made inwards trading, in addition to the areas that ask improvement.
Here are 3 areas of operate on surgical physical care for that direct maintain appeared especially oftentimes inwards my conversations amongst traders in addition to portfolio managers:
1) Allowing long-term views (on the economy, political views) colouring one's short-term trading. Many short-term traders (and non a few private investors) direct maintain missed a practiced total of the rally from March because they direct maintain held onto longer-term bearish views in addition to failed to assort those views from their reading of the tape.
2) Problems amongst execution in addition to merchandise management. As markets direct maintain gotten choppier in addition to less volatile, adding to long positions on forcefulness or curt positions on weakness has led traders to hold upwardly maximally exposed only equally markets turn. Unable to direct maintain the heat, those traders bail out amongst losses--even when their merchandise ideas direct maintain been right.
3) Staying equally good small. To hold upwardly sure, I run across enough of traders who overtrade. Less good appreciated is the work of trading equally good dull in addition to cautiously when practiced ideas in addition to setups are present. When I review the traders' results, I respect few trades (and periods of time) where the trader was actually aggressive in addition to making the most of an edge.
All of these brand fantastic physical care for goals for 2010. I'll hold upwardly writing to a greater extent than nigh annual goals equally nosotros close Jan 1st.
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