Pages from trade like o’niel desciple

108: mistakes of traders:

Your trading strategy stops working.

Personal setbacks can derail your trading, takes away your focus

New strategies can derail your trading: keep track of your strategies like versions of a software. I.e. 1.2, 1.3 and keep track of what you add or take away with each version. If you change your strategy because you think the market has changed, then down the road it doesn’t work anymore, is it because of the new addition? What if you go back to the previous version?

Deficient research techniques bring wrong conclusions: market research is the cornerstone of your trading strategy, however you must go back far and wide to test your research in order to be intellectually and most importantly emotionally secure in that strategy so you can’t be shaken off of it.

Pattern labels can oversimplify: take patterns in context with what’s happening with the indexes. If a pattern looks oddly shaped, compare it to what happened in the general market during those times, if the market tailspinned, then it explains a deep channel dip or a deep handle on a cup and handle.

Waiting too long to sell in unusual circumstances: just sell it once it goes past your stop.