Monday, December 22, 2008

Adjusting My Risk

Though I'm very happy to report great earnings progress it also makes me nervous. Not only are my these recent gains a hard act to follow but now I need to adjust the size of my trades.

Enter the arena of trading psychology.

Trading larger amounts let's you see losses and gains adding up faster. It's harder to resist the emotional forces generated.

So far this week I've been a bit hesitant and under-sizing my positions. I'm concerned that as soon as I increase my trade sizes that I'll hit some losses and lose confidence.

What the heck is that about?

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