October 2011: What Went Wrong

I came into the month of October after a week break from trading while my account was being switched to a new broker and in between that break I lost focus. Trading needs preparation and yes it requires a lot of it. It may sound to be a cool job to sit at home and trade, but believe me, it's the hardest job on the planet. The markets can humble any trader with one bad trade. Coming back to the first two weeks of October, I was in deep red, mainly because my bad habits started to creep in which is not doing day end analysis of the markets, not creating a set of stocks to watch intraday and not knowing the important levels to look for in the charts. I literally lost nearly 40% of my equity in a span of two weeks.

After a heavy setback, I told myself to trade small and look for best setups but again I failed in 3rd week and gave up another 10% of my equity. However, during the third week , I decided to set my goal as being green on any given trading day irrespective of what happens. I would have to say that drawdown of close to 50% of equity is no joke. I took it upon myself to turn things around and I made plan as to how to go about having 'GREEN on the SCREEN' again. I went back to basics, i.e. running daily scans to look for stocks with good setups which would give me an edge the next day to trade it.

Moral of the story, trading is a game, where if you want to play , you have be to prepared for it. There are no shortcuts or loopholes, you are either right or you are wrong. Developing a plan is necessary and is of utmost importance. If you have a plan you would know how hard you can get hit and how much can you gain. Executing the PLAN is my priority going forward.

I have been humbled by the market once too often and now it's time for me to get things right and succeed. Nobody can stop me from what I want or what I can achieve or what I wanna be. After 'ALL I CARE ABOUT IS WINNING'

My inspiration song for this week.

dchsn6