One of the best things about trading is you can review everything at the end of the day, end of the week or maybe just about anytime and you will find what went wrong with a particular trade and how you can improvise on it.
I trade not only because of the money I can make from it instead trading is a lot of about how I have a plan and I let the event happen and then execute my plan to perfection. Yes, nobody is ever perfect in life, that's why I keep on improving. Every trade is like a simple process, if I have a good strategy and I keep on doing it and improving it I will triumph.
Most of the time when I tell people that I am a trader, the first question is how much have you made so far whereas if I answer that I am an investor they ask me which all investments did I buy.
Let's break it down
1. People consider trading as gambling, you will never win is the saying. I beg to differ that simply because in trading you can calculate how much your willing to loose and always cut your losses and move on to the next trade whereas in gambling once your in a play you cannot cut your losses if you feel whatever you did was incorrect, hence exposure to a larger risk.
2. People consider investing as a money growing tree as if its gonna guarantee you a return for sure. I beg to differ on that as well as I believe in life only two things are guaranteed: death and taxes. Now a lot of people talk about investing and say I am in it for a long haul so even if my so called investment goes down in value I would still hold it as it would EVENTUALLY come back up but guess what these individuals are willing to take a paper loss of 70-80% of their portfolio and close their investment on breakeven if it ever comes back to their buying price, in most scenarios it never comes back and these same individuals will take 3-5% profit and miss out on 65-70% profits.
Now you guys would be thinking why am I writing all of this (maybe it's because its 4:30 am in the morning and I still haven't slept yet so I am rambling on and on). But what I am trying to get at is I have understood myself and have considered myself as a trader. I don't believe in having losses, if a trade goes bad I cut it out and move on. I trade based on chart patterns that I have been studying for the past 5 years and not based on somebody recommendation or that some person on TV was giving props to a company or because US job numbers were bad or someother nonsense news. For me personally everything outside the charts is all noise which I avoid.
I started my trading blog with heavy options trading but after my reviews I have understood I should rather trade stocks directly because of two reasons 1. Value of options fails to track price 2. once your in a profitable trade in options, it's not possible to give your trade enough time to breathe ( what I mean is even if the stock price comes back to breakeven price I will still loose money on options because of the spreads), therefore it's not possible hve a breakeven on an options trade.
I am currently in the process of looking for buying power and have started shopping around for firms to provide the seed capital.
At the end of the day trading is not about Profits and Loss ( as from the month of August even if I trade well if due to unforseen circumstances I can see dramatic drawdowns), it's about having a plan , being patient and executing it well and get the most benefits out of it. ( For me it's just like the way I play soccer, I pass the ball around and once I see an opportunity I attack the opposition and the end result is good shot at the goal, scoring a goal is benefit but planning it is the most satisfying experience, at times the referee might make a bad decision here or there just like my broker systems but if I keep doing it again and again, everything will eventually line up and I will score).
ALL I CARE IS ABOUT WINNING!! I am willing to loose and learn and make my winner trades be monster moves.
dchsn6
