Trading and Emotion, page-5

Thanks Nodferatu,  will definitely go and look more into the psychology needed for trading and investing. I think you hit the nail on the head regarding position sizes too. When I hit the rut, some position sizes were bigger than I usually use... maybe that made me moreso emotionally invested too? I definitely enjoy the research and being involved in the market, and the excitement and anticipation. Just wish I could be a bit more cold blooded and clinical though with the fluctuations Some books I read did explain the gambling/investing psychology, and it was an eye opener, but gee its amazing that despite knowing WHY you feel some ways, you still cant avoid feeling it .

Wow Pinto, that's brilliant . It's a great metaphor, and a great way look at the context of an investment, as well as to emotionally detach from market fluctuation. I felt I had timed my entry into the whole stock market late with what is happening in the global picture and possible global stock market uncertainty, so decided to focus on STT. Unfortunately for some bloody reason my STT outlook became shorter and shorter. With this my exits began to become knee jerk reactions rather than reasoned ones. I will definitely look at stocks with stronger LONG term benefits to make any daily rollercoaster price rides a little less scary and not necessarily the deciding factor of when to bail...

And thanks 64, the hobby statement is a great point I think . I wanted to do well for my family as some income on the side, but lately I think I've put so much pressure on myself to earn instead of originally treating it as hobby. I can see why so many people fail and give up on it. Every single person here seems to have an 'if only' story or two which causes or has caused them a lot of grief and remorse, much worse stories than mine. I'll check out that website, funnily enough the blogger is an author of a trading psychology book too!

Thanks again guys, I really do appreciate the time you've taken to help me understand things I have been doing wrong and ways to help me get on the right path again

Mick