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Friday, October 12, 2007

Thou shall not compute the profit

I told myself many times, don't compute the open position profit. No no no. Especially in the middle of the week. Don't fantasize with the profit. No no no. But I did it yesterday. Oh boy, what a discomfort it gave me. It really entice me to take profit. Yes, it is a bubble. It was a bubble two weeks ago, it was a bubble a month ago, it was a bubble 6 months ago. But the bubble keeps growing bigger.

By thinking in terms of profit, I am not able to read the market correctly anymore, every small correction gives me the jitter. It gives me the urge to take profit. My inner self was battling out:take profit vs. follow the exit system. Wise traders says: "Let you profit run. Sell your laggard!" Oh man, how hard it is to follow this simple advice. Psychologically, I'm still trying to train my mental thinking. The book that I'm still reading is The Disciplined Trader: Developing Winning Attitudes by Mark Douglas. Reading is one thing, making the points as your habit is another thing.

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