June 24th, 2018 | 1 minute read (Repost from We The Market)
As I think back just a few months back, I wanted to know why something happened. For example, I will buy long into a stock and just then the price drops. I would study that chart in hopes never to repeat that mistake again. Sometimes it was a mystery to me why a position moved against me.
Today, there is no mystery about the stock market. When you develop an attitude of expecting the unexpected, your trading will improve. In the future if I enter a long position and the ticker immediately drops, the only mystery would be why I broke a rule of not entering in a dip. Also, why was I not patient to wait for the drop? I can now pinpoint how many broken rules for days I have a loss or let a winning day dwindle to a small profit.
I do not profess to know everything about each position I take. I do know I can control how much I lose if the position goes against me. I can also control adding more to my position when all is going well at a rapid increase. I hope there is no mystery for you when you trade and you stick to your rules.
Know your rules and follow them!