Thread by @shiftingshares

The former (#DKL) has been my worst trade of 2022 so far.

It was too big a position in a hugely illiquid stock.

I got complacent due to illiquid stocks rallying like crazy during 2020 and 2021.

I also..

https://twitter.com/shiftingshares/status/1499369237198032905

Made the mistake of not cutting the lot once it went through my stop.

I should've sold the lot but again thought it might bounce back. It didn't and I ended up selling at worse prices.

One rule I didn't break was to make the mistake of averaging down..

Averaging down is a risky strategy and most traders (not investors) agree that throwing good capital after bad is a losing strategy.

Because of this, the losses are small relative to the account but this is needless P&L thrown away because I messed up.

What am I doing about it?

I've decided to be much stricter with positions.

You could buy anything in the last few years and make money but the easy money is harder to find.

I'm also trading more short term and on SETS.

Some of these stocks can still be illiquid though so caution still required.

Mistakes are inevitable.

You can either:

- Beat yourself up about it (which yields no benefits)
- Learn from your mistakes and so something about it

As a discretionary trader, there are always times to break the rules, but this time wasn't one of them.