Trading Mistake № 3

Trading mistake #003 After completing the last trade, I was exhilarated. The capital appreciation had been substantial and I exited almost perfectly. However, I feared I missing the reversal of the pullback and getting left out of potential profits if I did not act swiftly. This initiated a chain of actions which resulted in one trading mistake after another, changing my brokerage fee level and creating unnecessary taxable events. Losing a total of -4,15 % + taxes of my capital in the process.

First I entered with a too big of a position all at once on the first sign of a potential reversal of the pullback. When that did not work out in my favor, I restarted my attempt to enter the market by gradually scaling into a position, ignoring that the market was not in a proven uptrend yet.

Dismayed of the failed trading, I convinced myself that I would be content with owning dividend paying stocks. I started to buy dividend stocks until I realized I am not comfortable holding a stock portfolio waiting for dividends.

The definition of an idiot is doing the same thing over and over again, expecting different a outcome. Repeatedly making the same types of trading mistakes, insinuates that my trading plan is unfitting my personality and needs to be revised. I am not an idiot.