by Alexandra Grose

Created on: April 24, 2008

I wonder if trading is a zero numbers game? You know...make money, loose money, make money loose money and end up right back where you started. You've done all your study, learned the game well, or so you thought. You've done your fair share of practice with paper trades and then finally worked up enough courage to make your first live trade.

Awaiting the right moment to jump on board and with much apprehension you enter the trading arena, place your bid and sit nervously waiting, watching. Here comes your bid price, up on the screen. As you wait you start to question your pick. Have I made the right choice? Should I have waited until the direction had actually turned, before I placed my bid? What if this, my first trade, bums out?

The price match is getting closer and closer to your entry fee. Heart pounding, you watch as your bid price is met and your in. You've purchased at this point, because you expect the share price to turn around very soon. The support line has been reached and you hold your breath, while you wait to see a change in direction.

For the past two years you've been studying trading. You know you can pick the right direction, you've been doing it for long enough. It doesn't matter if the market goes up or down, you can trade either way. But it has been working, after all, considering you are so new at it. 95% of your paper trades did make money. After all that study and pretending with paper trades, you knew this moment would arrive, going live.

You watch, you wait, you hold your breath and yes there it goes. The tide turns and a new direction is set. You're in the game and making money. You continue for some time, one year turning into two. You get the occasional loss, but in following your criteria, those losses are quite small. You're doing well and very pleased with yourself, patting yourself on the back. Great decision, easy way to make money.

Then something happens. You loose! You've lost before and you don't expect to win every trade, but this loss hurt. You'd become a bit cocky with your successes and a little greedy. The trades you've been placing have been larger than the amount you'd set yourself in your criteria of trading. You've lost a greater percentage than you're comfortable with.

After the shock has settled you tell yourself that it's OK, you knew you could make mistakes. It had to happen eventually after all and you know you can make the money back up. Now, however, as you place the next trade, you're a little more apprehensive.

• 1
• 2
• 3
• Next Page >>