InvestorQ : Can you outline some steps as to how I can be more accountable for my trades?
Arti Chavan made post

Can you outline some steps as to how I can be more accountable for my trades?

Deepa Salunkhe answered.
3 years ago

It is one thing to tell a trader to take responsibility and it is another thing to demonstrate. Let us now look at some key rules for taking accountability. Merely telling a trader there no ifs and buts appears to be theoretical. Don’t worry; there is a practical approach to it. Here are the 5 key and important steps. Firstly, realize that every trade has a return and risk dimension. Understand these two dimensions and position your trade accordingly. Secondly, there will be extraneous macro and micro factors and that is where creating a Plan-B comes in handy. Thirdly, focus on managing your risk and checking your losses. You can never predict profits but you can surely predict losses and manage them.

Fourthly, monitor your trades on a regular basis. There are some trades that will show higher degree of volatility and they signify higher risk. Immediately initiate action on these stocks. Lastly, be quick to act once a decision is made. That is your best shield. Procrastination is not a great idea when it comes to the markets. Once you have decided that a particular position has to be cut or added on to, just move in and do it! You can be a successful trader only when you are accountable for your trades. Take responsibility and stop blaming the markets and the macro environment for the same. It does not work that way. In the stock markets you are just as good or as bad as your last trade. Learn to be consistent in the markets.