Chapter 12
The Defensive Trader
Sid had a problem with his trading that was causing him to lose money. Instead of waiting for the buy signal from his system, Sid would anticipate the signal and buy too soon. If the trade took a slight tick downward after it was initiated, he would panic and sell. As soon as he sold, the market would resume its upward trend and his signal to buy would appear.
When asked about the cause of the problem, Sid vigorously denied that there was a problem with his trading performance. He blamed his losses on the system he had purchased and the volatility of the market that he followed. In Sid’s mind, he had done everything correctly given the circumstances. For Sid, change was going to be impossible because he had taken a defensive position.
