Tuesday, June 23, 2009

Handling Missing Trade

It is hard to handle the emotion side of ourself when we miss the major movement of trades. Like the recent selling down of both stocks market of KLSE, KLSE future index and CPO future index. I was very tempted to short the future markets even when they are where oversold at one point. What guide me through the emotion part of myself was the pre-determined trading rules.
It is important to have our own solid rules (tested overtime) in the business of speculation; trading. The rules that you have been proven working for ourself. Of course, setting up trading rules require hard work; doing lot of testing (paper trading), reading books of successful traders like Jesse Livermore, attending seminars etc.

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