Wealth destruction

Making money in this market is a lot harder than loosing it. Especially when you make decisions because you want to make back losses. Usually you will make your losses even bigger that way. Although i know about this, i still sometimes make the mistake of buying or shorting a stock without remembering my rules, because i want to make my losses from an earlier trade back as quickly as possible. At least i don’t give myself credit when that trade turns out to be a winner.It is important to be honest with yourself and acknowledge that it wasnt right to take the trade,even when you were lucky enough to make money with it. Of course it is the result that counts in your p&l,but when you don’t teach yourself to make the right decisions you will repeat your mistakes over and over again. And the worst thing is,that you will not look objectively at your trades any more.

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The worst thing that can happen is,that you begin to question your rules because of this. You lost money on a trade were you followed your rules and made money on a trade where you didn’t. Some traders might want to change their rules then. But when your trading like that,you will never be consistent,because your rules are not consistent and you will only make money by accident.In the end it wont work. No matter how you trade, dont change your style from day to day or from week to week. It will only lead to wealth destruction.

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About Schwarzdaytrades

I am a full time day trader. I like to share my opinion about stocks and the psychology of trading.
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