One thing you should always do - a MUST - is revisit past trades for
anything that could be learnt. Sometimes on losing trades this is not
easy to do; it became easier for me once it was proved to me how
important stop losses are. And in that classic catch 22 situation, was
only something I learnt upon a study of past losers.
Stop losses taken are not considered losing trades by me anymore;
they're winners most of the time really, keeping trading capital intact
for the next big break I know I will get sometime. (And I can tell you
with some experience, in your trading career, stop losses will likely be
the hardest thing you ever have to master.) Taking stops is simply
something that cannot be taught. And EVERY profitable trader comes to
learn it eventually; take your stops.
UAL is one trade I took immediately after nine eleven. I did break one
of my rules there, buying an airline stock (I avoid stocks that have to
defy gravity continually) however it just looked way oversold, opening
as it did afterwards with all possible bad news (at this time) priced in.
I bring up this example because it highlights not only stops, but also
one should never be in a rush to buy; stocks being dumped like that have
to take time to accumulate, why not just let that happen, then go with
Anyway, I knew as soon as I bought it I was too early. Why do I do these
things? And why not just get out the next day
with little damage done ?
(united airlines.gif not attached presently)