Wow, it's been half a year since I last blogged. Life has been quite different from 6 months ago.
The biggest change would be my resignation from my full time job as a software engineer, and focusing on the development of my skill as a day trader. It's not a career transition you heard every day, and the worst economic recession of our generation neither provided a easy argument to the decision. However, the idea of this transition has always been in my head for years. I could document the events and reasons that ushered me to the final decision, but they will only make sense to myself. I do, though, have to thank my wife for her support as well as a few of my friends who were inspirations in my life.
Another big change in my life is the purchasing of our first house. It might seemed either crazy or audacious to get a mortgage while making a career change. Nevertheless, I felt that it was the right move, and it will actually help my career transition. :^)
I've had hard time finding things to blog about, because I didn't have a purpose for it. Now that I'm doing trading full time, it is advisable to document one's emotions and experiences as well as the trades for the day. I think that would be a good purpose for this blog, which could potentially improve my day trading experience by reviewing my emotions.
Please excuse me for the lack of coherent theme in this post. I'm just writing down whatever comes to my head at the moment.
I started day trading full time in July. I'd like to see if I can show profitability within 6 months. So far, There have been quite a few big losses. They were quite detrimental both to the investment portfolio and self-confidence. I knew that I would be having some losses as a novice trader, and experienced traders always say that one could only learn when one loses big. I guess I am paying my tuition big time. I just hope the tuition fees are coming to an end soon.
I have to admit that learning to day trade really keeps my ego in check. The slightest move base on greed or over-confidence could deliver a backlash to the portfolio like a bad dream. Asides from trading books, one book that actually helped me in dealing with ego is "A New Earth" by Eckhart Tolle.
Trading Mantras that I have learned so far:
1) Don't push a trade. If it seems difficult, do not trade, or take loss early.
2) Exercise the most patient manner for trading opportunities. Otherwise, it becomes gambling.
3) Know Distance, Direction, Duration, Volatility, Frequency of the trade.
4) Watch asset allocation, don't load up all ammunition at once.
5) Cap daily losses. Tomorrow is a new day to make it back and more.
6) Watch the emotions during the trade, negative emotions (fear, greed, anxiousness, vengeful, upset) usually means a bad trade is looming.
7) Feel the market's sentiment (giving, taking, not active)
Alright, that's enough for one post. Till next time...
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