Great question, sorry for the long answer.
Biggest challenge…history: I am a relatively smart guy, MBA finance, Retirement Plan Consultant/RIA therefore I used to “invest”, not trade, based on fundamentals and experienced several falling knives, as well as the usual emotional biases, sell winners too fast, hold losers too long. I finally learned that knowing a lot about stocks and markets has very little to do with investment success, might even be a hindrance. Moreover, it has been an expensive lesson.
In the process of moving to technical trading, but still took some unnecessary losses in 2018 by not having stops in place and holding a few losers too long. My biggest challenge is firming up “trading rules” to establish a stop limit up front on every trade, and exit-profit target price, or sell 1/2 at x price and continue to hold.
Have had some informal advice from a good friend who is an experienced trend follower trader, but more tips than details on his methods.
Two objectives for me are:
1) Develop firm rules based trend strategy—discipline.
2) Test strategy over time and track results. Make changes to strategy as needed, but only after proper time frame and evaluation of results. Lastly, KISS, simpler is probably better, at least in early stages.
Tracking results and getting feedback from market seems to be the key. If strategy is not working: is it the rules the trader is using, or the lack of precision and discipline in following the rules? In the past, have been too emotional because I like a companies potential for long term success or whatever.
Thanks Michael, looking forward to taking the course.
You are welcome. A good starting place.