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Hi Jim

In Daryl's first book [b]Share Trading [/b] he uses the analogy for wannabe traders of learning to put down notes on the  footpath and have someone pick them  up & walk away with your money

During the tech stock run traders worldwide felt they were invincible as stocks soared at an incredibly fast pace

During those times we found it easy to sell out at losses when you were making up for it on other profitable trades

Then one week the party was over - and all of a sudden  its not any fun anymore as you see red on any screen you look at - and no more green up days

First of all regret hits you - wishing you hadn't listened to that broker who told you to hold  - regret you hadn't got out sooner - regret you hadn't acted on your stop (if you set one in the first place) or not bought such a large position or too many positions or had actually taken the time to get some education on technical analysis, psychology and risk management in the first place

This then moves to hope - the BHP approach - Buy Hope and Pray - you find yourself looking at the charts or screen hoping the share will turn around - believe me the share can't hear you - it doesn't care about you or your hope - it always did and always will respond to supply & demand and if no-one wants it , it's headed South

Then fear really hits - gut wrenching fear as you see your capital decimated  - 20 years of working multiple jobs to get ahead & most of it all gone in months ....... sleepless nights  for weeks then months .......And you still have to try & function at work by day when you've been pacing the house night after night - your mind goes , your memory goes, your reasoning goes - and our waterfront home went.

And all of that can be traced back months previously to a series of small decisions that evolve around getting the right education and developing discipline for correct  position sizing, capital allocation, setting your initial stop, moving up trailing stops and exiting your stops when they're triggered

Hope this helps you in what you consider now to be a dilemma. I also hope this helps you decide whether trading is actually for you or not and please realise it's okay to say no and seek your fortune in other endeavours , in which case we applaud you for your decision.

I mean this with sincere conviction - trading is not for everyone and sorry to be appearing tough on you but acting on stops is tough - and the alternative is much tougher, believe me.

Cheers

John Atkinson
www.sharetradingeducation.com

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