Wednesday, March 31, 2010

I Think I learned Today

There's nothing like sim trading to let yourself make mistakes and learn from them without the influence of real money.

Real live trading and real money is not the way to learn.

We learn from our mistakes, the saying goes.

Do you want to pay for every lesson in hard dollars? I sure did for 18 months and I'm really not as far along in the process as one would expect.

There are loads of additional and impeding thoughts and emotions that go with real money loss and gain that complicate the purity of the lesson.

Today I can say, I impulse traded because I thought I saw a setup, but then while in the trade I realized that if I had just spent a few moments to analyze the situation in the way that I already know how to do, I would not be seeing red and losing here. But I can also say, hey, don't do that. Kill this trade, and move on.

Now what if there was real money involved? I would definitely not be so purely analytical about the lesson because I would now also have additional thoughts and feelings around this simple lesson. I might not even get to the lesson at all. I might not learn anything.

I might feel guilt, loss, grief, depression, anger, frustration, fear, greed, need, shock, despair, doom, having to cover the loss, paying, reloading account maybe, telling someone about it, and on and on and on and on. I guess you can say I've been there.

Today I have nothing but lessons. Here is a post by Dr. Brett regarding learning:

1 comment:

  1. If I knew then what I knew now I'd sim for two years before touching real money.

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