I am facing a dilemma right now. I have this strong hunch that if I trade I would end up making a lot less. Should I stop trading and keep my $290 in profits or keep trading for the prospect of more profits. This thought was in my mind when I was up $380. After I lost $90, the thought gets louder and interferes with my focus. Then there is another thought that tells me that there is a chance to make more cash today. If I stop now I might miss a lot of opportunities later on in the day.
Some days these thoughts just stand out and today is one of them. There are days when I disregard my hunch and I end up giving away most of my profits. I think my fear is winning out because $290 is an acceptable sum for me.
This is one of my weaknesses. I think a good trader who believes in his system will continue to trade because his system is profitable. I am a discretionary trader so I do get affected by emotions quite often. One of my future plans is to develop an automated system.
Since I am done early I will start reading The Disciplined Trader. It was recommended by Michelle B. over at Trader Mike's blog. Maybe it would shed some light into why I have these conflicting thoughts.
- I have been trading for 5 years. It took close to a year before I became profitable. I find that I am improving gradually each year. My method of choice is scalping. My edge lies in tape reading NYSE stocks and staying on the side of the specialist. That is the method I learned when I started. As I build up my capital I will try new styles and trade new markets. In late 2006 my trading hit a rough patch after the introduction of the NYSE Hybrid system. For most of 2007, I have been on a search for new strategies that would help me adapt to the market.