Hello my name is Mark Moskowitz and I am a tradeaholic. I love to trade, it is in my blood, it is my passion. Every weekend I go through withdrawal waiting for the opening bell on Monday, as a matter of fact no matter where I am on Sunday at 6 pm I will check into see what the futures are doing when they open from their weekend respite.
As much as I believe passion is important, if it becomes an addiction then that is something that needs to be examined. The other day my plan was to wait until 9:45 to conduct my first trade as I am usually the first one in the pool and this often leads to an early spanking. Well I did make it to 9:34 which was pretty good, but of course my brain tricked me into believing that I had to own AKS at this “great level” even though I would violate the rule I have set forth.
That my friends is addiction. Without rules we are animals roaming the plains, we are the wind that can blow aimlessly. When I take the time to sit down and contemplate it is my addiction to overall trading that keeps my months P&L down, so my mind says “if I am going to be addicted to anything, why not be addicted to following some rules that will allow me to make lots and lots of money?”.
So here is my list of Trading Habit to get addicted to:
1) Practice patience: Being the first one in the pool is not needed to make a lot of money. Waiting for 15 to 30 minutes at the start of the trading day will allow the trader to view the markets and individual stocks with a clear mind. Notice what stocks are up and which are down, are your stocks doing what you thought they might do and write down some notes on levels and make your list of strong and weak names that you will go to when the market makes a strong or weak move.
2) Cut the losers quickly: The longer I am in a losing trade the more married I get to it so I have defined a rule that stop this: If I am negative in a name for 15 minutes, I will exit half of the position immediately and make a stop for the balance at a level that makes sense.
Click Here for full article.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.