I am reading a book about Warren Buffet - the most successful investor in history in my opinion. I loved the book and the one thing which really stuck in my mind as I finished the book was what Buffet said in the end to make sure to 'Never lose money'. I kind of translate this to my way of trading which is spot on! When trading make sure you do not lose your stake, and as more I think about it the more incredible seems to me not to be able to stick to this rule.When I enter a trade I make sure to win something even a small amount and sometimes I get involved in such a ridiculous trades and feel very frustrated after I do not win anything.And there it is, I realise something now which I have known for many years but never had the power to stick to.
Tonight I made 5 trades which resulted in just above 8% green on my stake or £24. There were all right trades and I wish for more days like this one.
Monday, October 18, 2010
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