Confessions of a Stock Operator

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Old Nov 12, 2014, 11:42pm   #1
Joined Oct 2008
Journal: Confessions of a Stock Operator

An organic journal of trading thoughts, notes and instructions to myself.

Last edited by Jason101; Nov 12, 2014 at 11:51pm.
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Old Nov 13, 2014, 11:53pm   #2
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Jason101 started this thread Remember to always action trades with orders to open and never directly into the market.
Whether I am taking a profit, exiting for a loss or caught in a range bound market. There are often two exits that can be simultaneously be placed. One at the top but within the recent range and one at the bottom just outside of the range.

Also-
Gambling studies have shown that the shorter the time between initiation of a gamble and the subsequent outcome being realised, the greater the emotion and the more the addictive qualities of the gamble.
So a scratch card will be more addictive than a weekly lottery ticket and a weekly lottery will be more addictive than a premium bond and casino and slots being very emotionally charged and addictive.

This helps to stay relaxed, steer away from impulsive trading and to get better prices.
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Old Nov 14, 2014, 12:02am   #3
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Jason101 started this thread Don't leave your trading so late at night, that you can't be bothered and go to bed instead.
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Old Nov 27, 2014, 3:08am   #4
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Jason101 started this thread My defence has been pretty shoddy recently. This is because I have been in a hurry to hit my target, so I have more positions open than usual. So to reduce account exposure I have been opening single trades without the break even part. Probably not a good idea.
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Old Dec 23, 2014, 11:56pm   #5
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Jason101 started this thread Today I have decided for equity markets I will buy individual stocks on the way up. And sell whole indices on the way down. This is due to the slow climb up and the quick drop down nature of equity markets.

Last edited by Jason101; Dec 24, 2014 at 12:09am.
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Old Dec 24, 2014, 12:48am   #6
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Originally Posted by Jason101 View Post
Today I have decided for equity markets I will buy individual stocks on the way up. And sell whole indices on the way down. This is due to the slow climb up and the quick drop down nature of equity markets.
I'm sure your observation's correct and it will be interesting to hear how your response to this works out.
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Old Jul 23, 2015, 6:27pm   #7
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Jason101 started this thread I have been guilty of over exposure to the most popular markets.
Currencies, commodities and so forth. This has lead to unforeseen correlation.
Even though I have felt uncorrelated, this has been a false sense of security, as all the main
popular markets seem to have a solid macro correlation. As I have found to
my detriment on a couple of market reactions and turns.

I think I have been guilty of this due to an availability bias.
Since thinking about this I have changed my trading to incorporate a greater diversity by trading more
unusual stocks around the world as well. From the more obscure stock markets paying particular attention to trending stocks that are bucking the current trend.

So far so good. I will review this in a few months or so.
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Old Apr 6, 2017, 12:56am   #8
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Jason101 started this thread Confession time: Wally brain – Victim of own success.

Story:
Following my rules, my account grew so large, so quickly, and so many times, in such a relatively short period of time.
I thought I was golden, I could do no wrong. I began to believe it was a given I could make money in the markets at will.
So... I began to break my own rules. Entering earlier than I should. Trading bigger than I should. And I got away with it all. This reinforced my confidence which lead me to break even more rules. I felt I could pick trades out of the sky or off the floor. It was so easy.
So when a loss or two came my way, I thought it so easy, I would trade heavier to recoup some of my lost profits (besides, the account was in such a healthy state, how could it hurt?).
So when the next few losses came. I got angry and started to revenge trade. Still ignoring all the rules that made me the money.
Then with the decrease in account size, I thought, what the hell, in for a penny in for a pound. This was made easier because sub-consciously I associated my profits as being the markets money and not mine. (in a sort of easy come, easy go attitude.)

Moral and lessons.

Big wins = euphoria.
Euphoria = an unbalanced mind, Unbalanced minds = trading like *Tw*t.
Trading like a Tw*t = financial loss and a and confidence loss.

Self imposed penalty= If you do this again you are on a month trading ban.

Last edited by Jason101; Apr 6, 2017 at 1:09am.
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