What are you doing differently today ?
ที่อัปเดต:
You say you wanted to change at the beginning of the year ! That was your new year resolutions for 2020. It is May 2020 now , almost half time. How's your results thus far ?
If you are ahead of your goals, congratulations and keep on moving to the next one.
But if you are a little behind, you have to take a step back and identify what are the challenges you faced in the process and moving forward, how you can overcome it.
For example :
- are you over-diversifying by spreading yourself too thin ?
- are you forgetting to have a Stop Loss in place ?
- are you putting a position ahead of your trading strategy ? (eg. buying before the resistance breakout)
- are you over-leveraging ? ie. borrowing money from bank , thinking the ultra low interest rate and you can easily beat it to cover the difference but the reality is the opposite.
- are you over trading ? You had some losses and you wanted revenge in the market and you forced certain trades to happen. If you lose two out of three trades in a row, STOP. No more trading for the day. If you had to, go on a demo account to practise.
- are you using too many signals in your chart, creating more confusion and leading you to paralysis analysis? This is a learning process for any newbies. Over time, you would learn that less is more.
- Over -reliant on news - Market gurus say sell, you follow, another expert says buy, you follow. Remember , your money is your money and if you make profits, you won't give them a share but if you lose, you bear all of it. And it is the latter that you need to think thrice before taking their views and putting into action. (reference is fine)
The same mistakes will be made again and again, perhaps in a different pair, different product if you do not make a conscious change to it. Could the FOMO propel you to go faster , giving you the illusion that no profits will be left on the table if you are slow ?
Think of the market as the Ocean. What is the possibility of an ocean being dried up ? I would say very remotely. Each day, you go to the ocean and take a bucket of water and use, the next day you come back, it will still be there. The bucket of water is your profits or loss. How big is your bucket determines how much water you can carry.
The skills matter too, else you spill half the water along the way (ie. sell too early and not let profits run).
Contain your portfolio to a comfortable size that you can manage. Avoid the popular stocks just because your colleague or friends are involved in it. You long because over time it can make money for you. Who cares if it is Facebook or not (no pun intended).
When not sure, stay away. Like the airlines industry - Knowing Warren Buffett has sold all his airlines shares, now there are experts claiming they are buying instead. They may know something that you don't and blindly following them is dangerous. Stick to what you know is better.
A good method that I constantly use in my portfolio is the 80/20 rules. Out of 10 positions you hold, which is the 20% that gives you 80% of your profits. ?These are the stocks that you should pay more attention, adding when the opportunity arise and even take profits if the price is too high as well. Conversely, 80% of your losses would surely come from 20% of your portfolio. Identify these and weed them out if you have to.
Don't give yourself the false hope that it could recover someday. This someday dream would cause you opportunity costs and stop you from deploying the available capital to better use.
Do something different today so you can make the difference you want in your life!
If you are ahead of your goals, congratulations and keep on moving to the next one.
But if you are a little behind, you have to take a step back and identify what are the challenges you faced in the process and moving forward, how you can overcome it.
For example :
- are you over-diversifying by spreading yourself too thin ?
- are you forgetting to have a Stop Loss in place ?
- are you putting a position ahead of your trading strategy ? (eg. buying before the resistance breakout)
- are you over-leveraging ? ie. borrowing money from bank , thinking the ultra low interest rate and you can easily beat it to cover the difference but the reality is the opposite.
- are you over trading ? You had some losses and you wanted revenge in the market and you forced certain trades to happen. If you lose two out of three trades in a row, STOP. No more trading for the day. If you had to, go on a demo account to practise.
- are you using too many signals in your chart, creating more confusion and leading you to paralysis analysis? This is a learning process for any newbies. Over time, you would learn that less is more.
- Over -reliant on news - Market gurus say sell, you follow, another expert says buy, you follow. Remember , your money is your money and if you make profits, you won't give them a share but if you lose, you bear all of it. And it is the latter that you need to think thrice before taking their views and putting into action. (reference is fine)
The same mistakes will be made again and again, perhaps in a different pair, different product if you do not make a conscious change to it. Could the FOMO propel you to go faster , giving you the illusion that no profits will be left on the table if you are slow ?
Think of the market as the Ocean. What is the possibility of an ocean being dried up ? I would say very remotely. Each day, you go to the ocean and take a bucket of water and use, the next day you come back, it will still be there. The bucket of water is your profits or loss. How big is your bucket determines how much water you can carry.
The skills matter too, else you spill half the water along the way (ie. sell too early and not let profits run).
Contain your portfolio to a comfortable size that you can manage. Avoid the popular stocks just because your colleague or friends are involved in it. You long because over time it can make money for you. Who cares if it is Facebook or not (no pun intended).
When not sure, stay away. Like the airlines industry - Knowing Warren Buffett has sold all his airlines shares, now there are experts claiming they are buying instead. They may know something that you don't and blindly following them is dangerous. Stick to what you know is better.
A good method that I constantly use in my portfolio is the 80/20 rules. Out of 10 positions you hold, which is the 20% that gives you 80% of your profits. ?These are the stocks that you should pay more attention, adding when the opportunity arise and even take profits if the price is too high as well. Conversely, 80% of your losses would surely come from 20% of your portfolio. Identify these and weed them out if you have to.
Don't give yourself the false hope that it could recover someday. This someday dream would cause you opportunity costs and stop you from deploying the available capital to better use.
Do something different today so you can make the difference you want in your life!
บันทึก
cnbc.com/2020/05/11/asia-markets-global-economy-coronavirus-currencies-in-focus.htmlReopening of economy means - people back to work, spending as before to stimulate the economy, people can earn income and most importantly, government can continue to tax so as to collect revenue to funds its debts, infrastructure projects, protests damages, etc
บันทึก
cnbc.com/2020/05/22/asia-markets-us-china-tensions-coronavirus-currencies-in-focus.htmlIs China finally flexing its muscles ?
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