I've been reflecting on my journey as an investor, and it's interesting how my goals have evolved over time. Initially, like many others, I started trading stocks with the clear objective of making a profit. However, as I gained more experience and faced the realities of the market, I noticed a shift in my focus towards just breaking even at times.
Several factors contributed to this change:
1. Market Volatility (or manipulation???): The unpredictable nature of the stock market has often challenged my strategies. During market corrections or downturn experienced in early August 2024, my priority shifted to minimizing losses rather than chasing gains.
2. Psychological Factors: The fear of losing money can be quite powerful. When confronted with potential losses, I found myself becoming more risk-averse, focusing more on preserving my capital.
3. Operational Mistakes: I've made my share of errors in judgment and execution. For example, jumping into a trade when hit by an idea before checking indicators or relying on data to support. While these mistakes have been valuable learning experiences, they've also made me more cautious in my trading approach.
4. Risk Management: Implementing effective risk management strategies, like setting stop-loss orders, has been crucial. However, these strategies sometimes lead to a more conservative trading style, emphasizing capital preservation over profit maximization.
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