Saturday $STUDY Session, October 22nd.

Great links shared on StockTwits over the past week that discuss process, mindset, & strategies for success in the Markets

“It’s hard to know the difference between “I was wrong” and “The odds were in my favor but it just didn’t work out.” You can’t learn from a mistake unless you can accurate identify a mistake. But doing so is easier said than done. An investment that soured could have been a mistake, or it could have had a 90% chance of success with great return prospects, but unfortunately stumbled upon the 10% chance of things going wrong. The problem is we rarely know the exact odds of success of our decisions; we can only make educated guesses, and those guesses are influenced by how we want the event to turn out.”

“Every trader has strengths and weaknesses. Some are good holders of winners, but may hold their losers a little too long. Others may cut their winners a little short, but are quick to take their losses. As long as you stick to your own style, you get the good and bad in your own approach.” ~ Michael Marcus

“When you see…any new growth stock breaking out to new highs, especially on strong volume, that is a huge signal that something big is taking shape in the market.” Lessons on separating the “story” from the stock:

“Many traders get anxious when they have a winning trade on, eager to take a quick profit even though their price target hasn’t been reached and their analysis shows no reason to close the position. Being mindful of that anxiety and acknowledging it can help prevent you from terminating a trade prematurely and limiting a profit.”

“Of course a risk spike is poor risk management if we lose. We’ll curse ourselves, feel regret and probably feel angry that we just lost a bunch of money because of an undisciplined decision. But what if we win? In a way this is worse because it rewards bad behavior. The increase in account capital tells you that you did a good thing. And even if you realize you dodged a bullet and got lucky, since your mistake didn’t hurt you it makes you more likely to repeat it.”

“Whether an amateur or professional, trading is a difficult endeavor. The markets can be unforgiving…and, as much as it pains traders, are always right. It takes a strict trading process and discipline, amongst others, to succeed in this business.”

Find more great educational content like this, all day every day on the StockTwits $STUDY Stream: (click here)

Curated by: Sean McLaughlin

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