Line Your Own Pockets

Handling a Trading Mistake

Jan 20, 2025
Dave shares a client's trading mistake and how it revolutionized his approach. They delve into the psychology of trading and the need for a structured plan to manage emotions. The conversation highlights efficient strategies using tools like Amibroker and Trade Ideas. Listeners learn about the importance of systematic coding practices to prevent confusion and implement successful strategies. The risks of short selling are discussed, stressing cautiousness and active involvement in trading systems for optimal performance.
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ANECDOTE

Fineth's Trading Mistake

  • Fineth, Dave's client, launched a new strategy with a bug that caused 5x intended position sizing.
  • Despite the error, Fineth let the trades ride, hoping his edge would prevail.
ANECDOTE

Michael's Oversizing Story

  • Michael accidentally bought 10,000 shares instead of 1,000.
  • The mistake worked out well initially, reinforcing the bad habit.
ADVICE

Handling Trading Errors

  • Never trade a mistake; immediately flatten the position.
  • Analyze the error and adjust your approach accordingly.
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