We like to think we have a variant perception and we time arbitrage our investments and in time The Street will come around to our point of view and our investments will pay off.
But sometimes they don't.
For today's ten minutes of trying to learn how to be a better trader, I read an article tweeted by @JFDI.
Here it is: http://www.tischendorf.com/2014/03/10/michael-platt-hedge-fund-market-wizard-how-to-pick-a-trader/
I particularly love this line: "You are wrong if you are losing money for any reason at all."
I think great traders are not the ones that aren't wrong often. They are the ones that correct their mistakes the fastest.
To me, that means using stop-losses. (Don't give them to your broker, though, for %#@" sake!).
When the market is collapsing like it has been for tech stocks lately, I avoid the temptation to catch falling knives. At least in the short term, the market is right and I am wrong.