Who said trading was easy?
November 26, 2011 § Leave a comment
Nobody has ever said to me that trading was easy. So I have no idea why a couple of years ago I thought it would be.
What started out as buying some shares in my favourite companies has now turned into a way of life.
I get up, i think about it and now I go to sleep and dream about it. Maybe I need a break? Roll on Christmas 😉
However, what started out as buying shares and making a profit soon turned into losing money. Then making money, then losing money to the point where I was just above break even to break even. I should have walked away and thanked my lucky stars that I came away from the experience with my trousers and shirt still on.
Though, there must be something deep inside me that knows that this is the way I’d want to make money in the future. I am compelled / driven / I want to trade. Maybe it’s instinctive and I was born a trader. Unfortunately if that was the case I have lost the natural instinct somewhat and I need to find it again.
“Trading in the Zone” is a great book but unfortunately everything about a trader that Mark Douglas writes about has happened or is happening to me. Which makes me a cliché or some sort of trader clone.
So far I have:
Made a little more
Lost a lot more
Made some more
Which describes me as the “Boom & Bust” trader just like 50-60 % of the people in the trading business.
Mark says that 10% make steady profits , 30 – 40 % consistently lose , 50 – 60 % make it and lose it.
I am starting to take responsibility for my actions.
Thanks to London Stone Trading I have at least been given an edge. Something that a lot of traders don’t have. I have been given funds, though I wouldn’t have got my edge if I had not have spent those funds already with London Stone Trading or with a similar trading mentor. Youtube and the rest of the Internet and literature didn’t give me an edge in 3 years so I doubt it would have in another 3 years. I am fortunate now to know that real help is out there and a good mentor is invaluable , maybe even priceless. So if you are in a live trading room with a great trader it is the best way to learn.
All I need to do now is accept that, I enter the trades, I stay in the trades as long as I want and I close the trades. The charts that I open are full of opportunities to enter the market and make money. It is purely information and has no emotional bias other than it represents every other traders actions and emotions. As long as I go with the majority of traders at anyone time I should fit in and be profitable. If I go against the other traders it will be a lot harder.
The charts owe me nothing, they don’t even care if I am up a Million £.
When I visualise making a trade it is very easy. I wait for the chart to set up, I wait for the signal to place the trade, I set the stop, entry and limit and then I walk away.
When I actually make that trade, I do all of the above sometimes, not all of the times. When I go back and look at what would have happened that day if I just left it all to happen as I first visualised the trade, at least 60% of the time I would have been profitable for that day.
So it’s down to me. It is my responsibility and I should never blame the anonymous traders who are taking my money from me. As in actual fact I am handing them the cash.