tim's journal

Don't micromanage....

I found an interesting article by Dave Landry on 'My Most Valuable Trading Lesson'.

What happened next was the most valuable trading lesson for me, ever. Not being a participant, I found myself observing the markets, e.g., (NasdaqSC:^IXIC - News) very objectively. I saw stocks, sectors, indices all set up. Further, I saw market timing signals beginning to kick in. I reached a point where I simply couldn't stand it anymore. I stepped in and was immediately rewarded with nice profits. I got too busy to actively manage the positions, so I let trailing stops take me out. To my surprise, I ended up staying with the positions longer and was able to ride out larger moves, because I wasn't trying to micromanage the trades.