In the month of December 2012, I punted 2 stocks, Artivision and YHM. One I lost money because of super impatience and another because of over trading with ultra patience. For Artvision, I over traded with 500 lots and I paid the price for it. Well, I have no fear, no qualms, no complains, no whining whatsoever with the losses because I have learnt that as long as I am still in the market, there is a tendency for me to lose. YHM is a big mistake, it's basically me taking money and throw into the drain for no reason.
I have ultra confidence when it comes to my speculation skill or I won't be punting super big lot sizes. Money is something that can be earned back but confidence is something that money can't buy. I can be right most of the time but some days I am still wrong. Look at the entry and cut loss price, it's not far apart. While people always focus on how much money I make/lose, I focus on entry, exit, profit taking and cut loss price, that's more important than money because once you take care of that, money will take care of itself. With this loss, I learnt something very powerful which is called position sizing. I am now practicing position sizing in all my trades because it's the key element towards controlling emotion!
Don’t fear failure. Not failure, but low aim, is the crime. In great attempts it is glorious even to fail.
Ronald K - Market Psychologist - The Big Speculator
