The Life of a CFD Trader: Missed opportunities

If you were a Contract-For-Difference (CFD) trader or a share trader, which one is more “painful” to you?

1. The trade that you entered goes wrong, hit your stop loss, and you lose money; or

2. You have spotted a winning trade but you did not get on board because of some mistake you made and you miss out on a huge gain?

For me, number 2 is much more painful. Why? I don’t really mind about number 1 because I have a capital management model put to place, limiting my loss on every trade (assuming nothing serious happens of course). I also have accepted that losing money on bad trades is part of the life of being a trader. Remember, there’s no systems or methods out there that gives you 100% success rate!

However, in number 2’s case, if I miss out, I’m missing out on huge gains. Sometimes 1.5 times to 2 times more than what I’m risking on every trades. Also, not entering trades based on the entry signals that your system or method has generated can skew the long-term result of your performance.

Today’s post is for me to express my utter dissatisfaction over my carelessness with some of the winners that I missed out on. The most recent one was… well, a few days ago. It was all because of the fact that I woke up a bit late. Just 10 minutes late. Of all the days, it had to be on that day.

Let’s have a recap of what I have missed out on so far:

1. Wesfarmers trade a number of months ago. This was due to the fact that I did not react fast enough. The trade was supposed to be entered in the afternoon and exited just before the day’s close. I missed out on… approximately AUD700

2. AUD/USD currency pair about a month ago. By the time I realised that an entry signal was triggered for this one, it was already too late. The trade was supposed to be exited about a few hours after with a profit. I missed out on…. approximately AUD700

3. Mount Gibson trade. I missed out on approximately AUD1200. Reason: I overslept! Bugger…

Missing out on a trade because of carelessness is as good as a loss to me.

Disclaimer: This article is not a specific nor general advice on managing or investing your money. This article does not constitute a recommendation nor does it take into account your investment objectives, financial situation nor particular needs.

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Other related posts:

CFD Trading : An Introduction
CFD Trading/Share Trading : Setting Stop Loss
Investing & Trading. What’s the difference?
CFD Trading/Share Trading : Stop Loss in Perspective
CFD Trading/Share Trading : Being Long and Short (Concept of Short Selling)
CFD Trading/Share Trading : Short Selling in Perspective
CFD Trading/Share Trading : The 2% Rule

About nadlique

This blog is about the journey of a 28-year-old Malaysian towards financial freedom. This blog was started back when the blogger was 21 years old. However, his journey towards financial freedom had begun way before that. Materials such as investing, business, entrepreneurship, equities, and real estate are presented. The author also posts his thoughts and observations on life in general.

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