This was a bloody month as I clocked in my biggest losses since July last year. So what happened?
- I got cocky! – The first two weeks I started taking trades rashly and quickly. I jumped in way too early and my timing was waaaay off. I simply did not respect my strategy.
- I was chasing stuff and that is definitely a bad sign.
- I did not wait for the trade to come to me and maybe was too eager to succeed
- Risk Management! – This is a big one! This resulted in my overtrading. I forgot about risk management and should not have taken trades with only a 1 to 1 risk/reward ratio or less. I have to think about this more next month.
- Sizing – When I got scared I downsized. I also downsized when I was playing pullbacks and that was definitely not a good strategy.
Next month I will be different and change my ways. The market has certainly humbled my dumbass this month but I continue to persevere, learn and strive forward. I will be more careful this month and make more wise choices as I continue on this long, tough, arduous but ultimately rewarding journey from zero to a hopeful hero.
I have decided to re-do my rules for Jan.
- Put my potential new set-up on hold and focus again on Bottom Bounce
- Trade only 1 ticker at a time because I am not ready for two yet
- Play pullbacks correctly by waiting for a new high.
- It is definitely ok to miss the first pop. Wait for the pullback and play.
- Trade less! – A missed play is better than a losing play.
There we go. Let us now tackle January again. Restart fresh again.
The lessons of trading are painful the say the least. Started with try to play the move at around 12.35 and took a tiny profit on that. Waited for the pullback to re-enter at around 12.45 and then I saw a hard rejection at 12.60 for the third time and took that as a sell signal.
Just moments later it did what I wanted it to and burst through the resistance. Wow that is definitely one of the worst feelings in trading. To miss my trade by mere seconds. The line between success and failure is so thin. A good lesson learnt and I have to sit and ponder about this one. Would I wait sell again if such a situation happens in the future? Probably, I mean that .60 mark kept rejecting, I feel I did the right thing but its so hard to accept that.
Win some lose some but I think the important thing learnt here is to stick to the rules and trade the chart.
PS: In case someone was wondering where round about 100-130 USD went? Well I have to pay for my platform so that fucks me up a little ;). I know I keep wondering where that disappears to as well.
It has been a while since I did one of these but this week I traded on all 5 days. It is rare for me to do so but it does depict my growing passion and addiction to the art. Still being relatively new (based on hours spent studying and in the markets), I made a ton of mistakes. I also made some significant strides but today I would like to just pen down my three biggest takeaways:
- Have confidence in your strategy. Many times this week I got scared out of positions quick only to be proven later that the stock did exactly as I expected and according to the pattern that I had studied or analysed.
- It is okay to miss set-ups. I found myself chasing things a couple of times even when my target entry point was missed or even worse, was not hit yet. I realised, the markets will constantly provide opportunity and its ok to miss some sometimes. That ticker you been analysing for 2 hours before the market opens just may react quicker than expected or hit a support much later than expected. Its okay if it goes down as a miss!
- Trade the chart, not your emotions. This ties in well with the above two. Be patient and wait for you entry. Once entered follow chart patterns to take profit or cut losses. Do not follow what you feel may be the best thing to do at that time. Take guidance from the chart
So I have not been around for a while. Many reasons but mostly because I needed to regroup my thoughts. Admitting that I had failed on the first try was tough. I knew it was a possibility but its something you only can feel and overcome once you reach there. I had about 900 left in my account or thereabouts. I had three choices:
- Fight till the last dollar
- Top up
- Give up
Choice 3 was quickly out of the question. It was at most a passing thought. Throughout this whole journey, I had loved every step of the way. I paid a tuition for that education for sure but I knew it was just not my time yet. Fighting till the last dollar felt like i was being desperate and using terrible economics. Opportunity costs started to increase as there were many trades I had to forgo and many that I could not take the correct size on. So what did I do? I took choice number two. I topped up. But this time I knew I had to change something. That was back to the books.
I created excel models and filled my spreadsheets with values. I knew I had to take on a very analytical approach and focus on three main things.
Am I done researching those things? NO. I still need time before I can say properly that I am fully back in the markets. Will I ever be done researching? Probably not, but I do need a threshold amount of data points for my analysis to be even mildly significant. Hence time. So I will be back!
Today I have never been more pissed at my trading screen than ever before. The below will explain.
TTIM did exactly as I expected. I had my limit order in at 13.84 for 600 shares. Guess what the fuck happened! My fucking, fucking, fuckshit, dipshit, motherfuck cracker jack piece of wanker banker TRADING PLATFORM decides to fuck up. It tells me I got no buying power. I slam that god damn piece of cunt filled button again but the dam dipshit motha fucker decides to fail on my ass again. This time i contact my broker and 20 FUCKING MINUTES later they reply that there was a technical glitch and restricted my BP even though it shows the ‘right’ amount on the platform. I seriously felt like throwing a chair. The perfect set-up comes along and only god can explain why it had to not work at this time.
Breathe. Breathe. Breathe. I counted to 10 and vented my anger at my phone to a dear one. Poor lady had to absorb my wrath. Breathe. Breathe. Breathe.
Then I took this trade below: FTR
No surprises there this one did not work out. The set up was perfect but the gods were not on my side. Lost 10 cents on this. Kept it tight because it started looking iffy and was not going as planned.
Does not feel good today. Felt like hardwork and planning went down the gutter. To a new day tomorrow.
So check this:
Realizing I’m not respecting my trading rules I made two changes this weekend.
- I put my retarded emotional trading charts on SPEX as my desktop wallpaper to remind myself to not be a clown
- I emailed my broker to set my max loss at 150 per day. It is done now. Seriously happy about that.