In hindsight, my biggest challenge was my biggest mistake.
I did not know when to cover my position be it profit or loss.
I let my losses run and took my profits immediately which resulted in a slightly positive to negative ledger.
I realised that mistake too late in the day.
Also, I thought that a trading strategy should be “perfect”, which I later on realised was an incorrect notion. (Also realised that my understanding of the term “strategy” was quite narrow)
I did not pay attention to the risk associated with options trading (especially time decay)
This resulted in me blowing my initial capital set aside for trading in 2016.
The current challenge that I face is understanding how a mechanical trading strategy works and how one can design, set parameters and test the operating effectiveness of a mechanical trading strategy.
I will be reading [name] by [name] to gain some insight into this.
I recommend my book Trend Following as a primer. Dive in!