Before I started trading... I spent months reading books, websites, blogs, asking countless questions to everyone and anyone who would give me the time of day... I knew if I really wanted to learn how to trade I'd have to learn in the trenches... hands-on... using real money... making the calls for myself.
I've been trading for just over 2 1/2 months now. My first "real" trade was on Wednesday August 6, 2008 and I lost $84.90 on that trade. Interestingly enough, I "coulda" made a couple hundred dollars from where I entered, but I didn't have any idea what I was doing. What I did know from that experience was that I loved with the process of trading and I wanted to learn how to be a great trader. I was and still am willing to put in the time necessary to achieve this goal too.
Simply put, there are far too many variables involved with trading, for a few books or conversations to cover everything. Like working out a muscle in the gym, if you want it to become bigger and stronger you have to work at it and over time it will become bigger and stronger... likewise with developing good trading skills. There are no magic answers or crystal balls to guide you to riches (crystal balls per Laura).
For those that trade on a regular basis... you know there is no-other emotional roller coaster on earth like day-trading (with the exception of a bad relationship of course). Although trading is humbling... to the bone... it can also be one of the most rewarding experiences a person can have too! The catch is having discipline and patience, investing the time, good ol' fashioned hard work and a bit of luck (luck per Muddy).
I've grown leaps and bounds as a trader in a short time. I've learned from each of my losses (my best learning experiences... just like in real life) and there have been many; I've lost big and won big (relative to my account size) and I love keeping my trading transparent. I have nothing to hide. My days are 14-16 hours long; being a father, running a business, doing my DD, writing in my blog, going to the gym... (having a beer here and there)... I'm 30 so I still think I can do everything! (I digress...)
I approach trading with a 25% technical/75% psychological strategy. I'll do my tech analysis on several stocks. Once I've decided what I want to play these stocks, I fill out my plan... then psychology takes over. You can analyze any chart to death, but once you take a live position it becomes mostly psychological.
- Love what you do (and I mean truly love what you do) and the rest (success) will follow.
- Don't put pressure on yourself to succeed... you will inevitably force bad trades.
- And most importantly have fun! Enjoy letting the process go through it's process!
See you in the trenches.
BottomFeederMillionaire (can someone tell me how to center this??? THANKS!)
3 comments:
Noob, first, you're awesome, second, I love reading your takes on the psychological part of trading, and this post is really a great read, and third, I bet you'd be awesome to party with if there's ever a GOTS party (which there obviously should be...but Muddy and 13th can pay everyone's airfare haha)
Noob, loved this post. All heart.
Love this post. Once you are in a live trade, technical analysis goes out of window (or more precisely, out of mind). After that it's all about you can control your mind and try to keep that analysis in your head.
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