May ended up a month of dismay (no pun intended) as my trading account fell from a net gain to a net loss. The losses came from 2 CFD positions that I made on just a single stock -> Expedia.

Managing risks

Before we trade, we need to know what and how much we are risking. (That is why now I don’t touch Options. ) Sometimes, acting on a spur of the moment may make us take on more risks than we would like to. It could be in the form of leveraging or averaging down.

Time and again I have to remind myself to exercise prudence and to think twice before clicking the BUY / SELL button.

Quick money = quick disaster.

Expedia case-in-point (where I have made really stupid novice mistakes):

1) I didn’t stick to rule of position sizing and averaged down on my losing position.