Wednesday, November 23, 2011


(This will be a "sticky post" - so I can continually add/subtract aspects and refine strategies as I go)

As you can probably surmise from my previous entries, I've been trading terribly the past few months. My performance has dipped drastically since my hot start. I know I need to turn this around now and make it work or my boss would kick me out. I can't make any more excuses. Redemption is my only saving grace.

I think the best way to start my journey to redemption would be to do a brief SWOT analysis on myself and my trading. Here goes:

- Independent. Doesn't rely on others' opinions or tips.
- Good handle on basics and supplementary techniques.
- Can understand the market movers and catalysts that affect stocks.
- Good quantitative and IT skills.
- Innate interest in the game; willing to learn markets other than equities.
- Has a history of turning things around.

- Lack of discipline.
- Tendency to procrastinate.
- Can be easily influenced by emotions (fear and greed).
- Lack of patience.
- Needs to learn how to properly fuse technicals and fundamentals.
- Negative mindset when losing.
- Position sizing and money management need work.
- Needs to follow through.
- Too competitive (distraction)

- Strong support system.
- Mentors that have a good grasp on the market.

- Constant distractions: Facebook, Fantasy NBA, etc.

Action plans to address weaknesses:
- Lack of discipline: have a plan drawn up the night before which includes stops, targets, position sizing, and all the other essential preparations for the day. During the trading day, if it's not in the plan, then don't execute it.
- Tendency to procrastinate: a list of things to be accomplished should be done every single morning. Reward oneself when all things are accomplished as planned.
- Emotions: stick to the plan in order to avoid freezing,or getting ahead of oneself. When greed/fear/hope strikes, sell/buy a bit as long as it's part of the plan.
- Lack of patience: When there is no set-up, trading is forbidden. Never chase stocks, wait for the pullback or retest. If the stock doesn't, then avoid trading all together.
- Fusion of technicals and fundamentals: READ READ READ. Learn from mentors.
- Negative mindset: Do something that would help fend off negative thoughts, like blogging. Or, play some games that can easily be won, just to boost confidence. In the next trade, trigger the highest percentage set-up that can be traded.