Sunday, July 19, 2009
Did I Do the Right Thing?
I have just put this screenshot from yesterday as this race asked some serious questions of my trading. As you can see I made a nice profit from the race, however I did some things that I think may cost me in the long run. I thought the horse was going to come in a bit so I backed at 4.8. The opposite happened but I was still convinced the horse was going to come in so I backed for another £100 at 5.4. I was then out of my comfort zone as every tick that went against me was costing me about £4. I wanted to get out but froze and part of me still was sure the price was going to come in. Then the price did come in and the move was quite strong so I was able to make a nice profit. However this doesn't always happen and I could have been left with a hefty loss.
After this race I am left with these questions
Is it always good to go with your gut feeling?
At what point do you realise you were wrong and cut your losses?
Would this type of strategy work in the long run?
Is it a good idea to risk more money when the initial trade goes against you?