**The psychological importance of defining and limiting risk

Afer doing some focusing, I realized the scared feeling I’ve been getting lately could be related to stocks. I’ve been really scared that I’m down so much recently and that this could affect my further and my dreams. 

But I realized I only feel this way when I’m down big and really close to being out of the game because of my investor loss limits.  However, if I were to have cut my losses very short and limit my risk every time, I would not be feeling like this. In fact I would have had to lose many times to get to this point. I need to cut my losses and more importantly define my risk before I buy, and stick to it.

From now on, for the sake of my own happiness AND for my and my friends accounts, i promise to limit risk to the T every trade, and get out right when I need to. It can Always Go lower.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s