Thanks for the post, can also say something briefly about this. I've noticed something similar with my normal positions, i.e. the ones I've held for 1-2 years or longer, depending on how they develop.
As with swing trading or buy&hold, there is also the risk appetite that you should know and where you feel comfortable and it makes sense.
For the last 3-4 years I've had around 5K positions in individual stocks.
This year I opened a larger position. Over 20k in one position.
I don't feel nervous or worried (or so I thought)- but something has changed and there is a new feeling that I haven't experienced before.
Of course, this week was the best example of this - it went down a lot. But even weeks like that are part of it and then maybe it shows you that it can trigger some nervousness that you didn't know before.
I still feel comfortable with it, but you can tell that it does make a difference. 🙏🏼
As with swing trading or buy&hold, there is also the risk appetite that you should know and where you feel comfortable and it makes sense.
For the last 3-4 years I've had around 5K positions in individual stocks.
This year I opened a larger position. Over 20k in one position.
I don't feel nervous or worried (or so I thought)- but something has changed and there is a new feeling that I haven't experienced before.
Of course, this week was the best example of this - it went down a lot. But even weeks like that are part of it and then maybe it shows you that it can trigger some nervousness that you didn't know before.
I still feel comfortable with it, but you can tell that it does make a difference. 🙏🏼
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@HODL-Humpy As you say, you have to feel comfortable. This limit is different for everyone and also changes over time.
When trading, for example, regular losses are normal and should not be a burden. As long as the setup is right, these are "expenses" that are part of it. I noticed that once I reached a certain size, I suddenly started thinking more about these losses and they led me to start "tweaking" my setup. The absolute amount was suddenly in the foreground, and it should actually be order flow and price action, simply the strategy traden🤷♂️
You can see the difference between "paper trading" and when it comes to real money.
Years ago, I started with €500 positions, which has now leveled off at around €10k with active trading.
When trading, for example, regular losses are normal and should not be a burden. As long as the setup is right, these are "expenses" that are part of it. I noticed that once I reached a certain size, I suddenly started thinking more about these losses and they led me to start "tweaking" my setup. The absolute amount was suddenly in the foreground, and it should actually be order flow and price action, simply the strategy traden🤷♂️
You can see the difference between "paper trading" and when it comes to real money.
Years ago, I started with €500 positions, which has now leveled off at around €10k with active trading.
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•@TomTurboInvest Yes, that's right, as you say, with trading I know beforehand that losses are also part of it - if you don't feel comfortable with them, you shouldn't even try it at all - or slowly feel your way around. The stock market is not a one-way street. You have to know this or learn it. Making losses is part of it.
As you have nicely described: if the stakes get bigger and then emotions get involved and you try to change the setup you have, you should question whether it is the right thing for you to buy such a large sum. That is one of the most important things and what makes you successful. Using your system and having clear rules, even if it goes down. Of course sometimes there is something to change or optimize but not because of feelings. Very nicely described by you....
As you have nicely described: if the stakes get bigger and then emotions get involved and you try to change the setup you have, you should question whether it is the right thing for you to buy such a large sum. That is one of the most important things and what makes you successful. Using your system and having clear rules, even if it goes down. Of course sometimes there is something to change or optimize but not because of feelings. Very nicely described by you....
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