AAR & TOL 03 (Aug 09 - Dec 13)

[winston]

After Action Review ( Stop Loss )

In 2011, I was shorting the market and it kept on going up. I should have put a % Stop Loss on that trade or at least a Time Stop Loss but I did not.

Instead, I kept on hoping that the market direction would change but it did not.

In 2012, I made the same mistake again. This time, I was long the market and it kept on dropping. However, I did have a Time Stop Loss this time and cut it after 3 weeks.

After I have cut my position, it went up and had I stayed with that position, I would have recovered back my losses.

Lessons Learnt:-
1. I'm not really that good at predicting Market Direction
2. Percentage Stop Loss is better than Time Stop Loss
3. Never carry forward a loss over a week-end, if you are trading short term

[winston]

After Action Review ( Frequency of Trading Mistakes )

For 2012, I made one trading mistake which should not have been made.

For 2011, I made 4 trading mistakes. That's because I was over-confident as I had made only one trading mistake in 2010.

For 2010, I made one trading mistake.

For 2009, I made 7 trading mistakes. Mostly, I did not have a % Stop Loss and a Time Stop Loss.

[winston]

After Action Review ( 2012 Position Size )

In some instances, I have also not been betting my minimum size.

This is because I have been a bit too careful this year.

As my targetted percentage are very small, I need to bet the required position size, to make it worth my while.

Many times, I thought that I would have enough time to build a position but instead, the price then move rapidly and I dare not chase thereafter.

[winston]

After Action Review ( 2012 - Catching Falling Knives )

In 2012, I was also trying to catch some falling knives.

For some falling knives, I should have waited and let it touch the floor first.

The cheap can become cheaper ...

[winston]

After Action Review ( 2012 - Dividend Stocks )

I sold some Dividend Stocks too soon. Thereafter, they just kept on climbing and climbing.

Most of these dividend stocks are owned by Institutions and they are always around to buy on the dip, not to mention to push it up slightly, at quarterly Window-Dressing time.

If you want to invest in Dividend Stocks, then sit on them.