This is a continuation of How Am I Doing in the Stock Market? The Good, the Bad, and the VERY Ugly!
First reaction to a bad mistake
So how do you handle a terrible mistake? You could start blaming others, making it their fault. Trust me, I thought about it, trying to analyze what I did and how it could it NOT be my fault. But in the end, it WAS all my fault. To read about my mistake, see How Am I Doing in the Stock Market? The Good, Bad, and the VERY UGLY!
At times it was overwhelming. I just wanted to turn back time and do it over the right way. But it’s done. Now I had to live with the consequences. But sometimes that felt devastating. I’d try to think positive, remembering I still had money to invest another day. Then I’d think about how much I’d have if I hadn’t been so stupid. I’d stay awake at night dwelling on it, finally falling asleep just to wake up in the morning realizing it still had happened.
I finally forced myself to not dwell on it. What’s done is done and there is no changing it. I could throw in the towel and be content with what was left or I could pick up my chin and dignity and try again. So I immersed myself in learning more and more about stock trading. In one podcast I listened to, a certain book was highly recommended. It was Reminiscences of a Stock Operator by Edwin Lefevre. I ordered a used paperback copy but was too impatient to wait for it. So I downloaded the audio version free through Amazon Prime and spent the next few days listening to it. It was slightly comforting to hear that this great stock operator Larry Livingstone, the pseudonym for Jesse Livermore, made and lost millions. He was broke at least twice and I was not. And there were lots of lessons all through the book.
Choosing to be productive
I also decided to start this blog. Maybe I could help others with my story. Of course with such a bad start, I’d expect others not to be impressed. But I know exactly what I did wrong and how to avoid it in the future. Also, by writing about my experiences and what I’m learning helps me retain it. Analyzing and understanding where I went wrong, then applying my new knowledge to new experiences falls right under Bloom’s Taxonomy, something teachers have been encouraged to use with their students for higher thinking. And I could use some higher thinking these days!
Learning from the mistake
Lastly, I’m trading stocks, being very careful and selective to buy only the best ones and at the right buy points. The name of the game is to be very flexible. Be ready to cut my losses and be ready to jump in when the market and stock(s) are acting right. As of this writing, the market has bounced back up nicely but it could easily go right back down and even farther than before. But I’m ready this time! A bear market means opportunity on the other side and I want to be there waiting for it. And so can you!
No Mistakes, Only Lessons
Be prepared to make some mistakes. We’ve all made mistakes. Just own up to it, analyze what went wrong and try again. In one podcast Ruth Soukop, a very successful entrepreneur said, “Do more of what works and less of what doesn’t.” And she also said, “There are no mistakes, only lessons.” Here’s to more lessons with a lower tuition!
Until next time,
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