I am forced to write a early reflection because of how badly this month has gone for me. Many mistakes were made. And most importantly rule number one cutting losses quickly is broken.

I believe there are two factors that really affected my ability to cut losses quickly. First is fomo. Because I was afraid for the stock to come back and become a big runner. Second is sometimes small losses I am fine with, such as 1-8%. And then what I tend to do is keep adding and adding. Here are two hard rules:

Never have a loser bigger than 10%. If a stock has gone against me for more than 8%, the decision is being made to cut losses, no exception.

Only the stocks where it is on my watchlist and I planed to add is ok to add. And never more than double the position.

 

And some trading knowledge mistakes: never to to predict a breakout, for example, if I said ok, I think it is going to breakout, so I buy, there is no no. If the stock has already broken out and is holding well, that can buy.