Previously, I had mentioned that I’ve hit a rut as of late. I believe the only way to get better at this point is to review my current performance and determine which areas are my strengths and weaknesses. One way I can do this is by having monthly reviews much like how Bullish Jim has done. Bullish Jim has been trading ten years. This year he began swing trading and is currently up about 7.5+% for the year.
At one time or another all of us have made the same mistakes Bullish Jim has. I think we can all learn from some of his reviews, which is why I’ve posted it below.
Here are some of his reviews:
1) I've been a pig at times. Rather than taking a quick gain when it has been handed to me, I've held on too long and watched gains shrink or even turn into losses.
2) I've been undisciplined. Holding non-trending stocks too long, failing to keep stop loss orders in, and failing to adjust stop loss orders to protect gains are probably my biggest blunders in terms of discipline.
3) I've been too cautious. While I was an average of 96.1% invested for 2006, my average invested for 2007 has been just 81.2%. It is very hard to beat the indices if you're sitting on an average of 20% cash at all times. My excessive cautiousness peaked in the past couple of months as I averaged just 72.8% invested for the months of August and September.
Like Bullish Jim, I will continue to work hard to improve my trading. I'm confident that I can maintain the momentum, which I picked up the past few weeks, the remainder of the year.