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Not Every Trade Will Go Your Way Ever Time |
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There is a difference between a good trade that didn't go your way and a bad trade. Market forces are beyond your capability to control, and you may have been absolutely right in your judgment about a trade but slightly off in your sense of timing. Sometimes, you can be too smart. I usually attribute the failure of the market to change my way to the failure of other market participants to see what I see. There is a strong adherence to the pleasure and pain principal in DAET. I assume that everyone trades for the rational reason of maximizing capital by either capturing profit or preventing loss. |
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Every trade confirms a mutual understanding of value. One party buys what another sells. And both are happy, because most items are underpriced to the extent that no one parts with anything of value for something of less value. When the market fails to react according to my preconceptions, the irrationality may be due to head fakes, jiggles, bona fide timing differences, or a totally unrelated consideration. If you are fundamentally correct in your perception of a stock, you hope everyone else will recognize what you have already perceived. |
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A special pain will shred your heart when (1) you are right fundamentally and technically, (2) the trade should have been profitable, and (3) the trade actually was profitable in a longer time frame than you initially projected. It always hurts to lose money for the wrong reasons. |
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Always remember that a missed opportunity is not a lost opportunity. Chalk up the information you failed to act upon to the increase of your learning curve. The next time you see the same situation, you are poised for profit. Never look back and cry! |
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Most DAET traders would rather trade than do anything else, except maybe eat or procreate. DAET traders love to |
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