Just For Thinking ....
From Show me the money, by Teh Hooi Ling
"THE friend whom I quoted as saying a trade changes the trader said I missed the subtlety of his comment. "My point is the experience of buying and selling something changes the person who does the buying and selling," he wrote to me. "It is a feedback mechanism or reflexivity that is often forgotten in investing or trading.""
From one of the blog posts in BigFatPurse
"The Straits Times index has done exceptionally well over the recent months, returning close to 10% since mid November. Like the hot girl that walked up to the bar alone, it has created a stir and is starting to attract its fair share of interest. Many of my friends have made tentative forays into the market again after a layoff. A user left a comment on the blog sharing about the trend following strategy that he has been trading with, and how he has finally understood it after such a long time. He claims that the understanding is finally bringing him positive returns. I am skeptical and wonder if his stellar performance recently is due to his new found understanding or due to the favorable market conditions. I also wonder what will happen when the market decides to stop trending and range, and whether he would be able to obtain any returns from his trading activities if he were to utilize this strategy alone."
Why we make mistakes in investing or trading?
How often we got ourselves misled into short time frame of performance measurement in investing or trading and thinking that we have found the Magic in investing or trading?
Investing performance has to be measured over market cycles of Bull and Bear.
Trading performance has to be proved by thousand trades.
You don't think so???