Thursday, 28 May 2009

Learn by Analyzing Your Failures

This is a very important aspect to your trading/investing. Going over your mistakes is painful, but you can learn alot about yourself and your system. Here are a couple of excerpts from William O'Neills How To Make Money in Stocks:

"I was so mad that I spent the last six months of 1961 carefully amalyzing every transaction made during the prior year."

"Eventually my problem became clear: I knew how to select the best leading stocks, but I had no plan for when to sell them and take profits. My stocks went up and then down like yo-yos, and my paper profits were wiped out."

"Plot out your mistakes on charts, study them, and write some additional rules in order to correct your mistakes and the actions that cost you money."


Source:
How to Make Money in Stocks by William O'Neill

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