Wednesday, April 27, 2011

Back to blogging

I've had a hard go of it over the last 2 years. I changed my trading style from stock screening and longer term swing trading, to day trading futures. I went from working with my wife in a high paying job, to trading for an income for the entire family. My trading account went from a tidy and comfortable amount of money to about the amount that I started trading 7 years ago. My ego deflated. My trading sucked.

I've recently started pulling things together. I went back to work, and my wife recently joined me. I no longer need to trade for the mortgage payment each month (which I found to be incredibly stressful). I can take my time and take only the best trades.

I'm still making foolish mistakes. I think they're residual emotional problems from the pressure I felt to make money. I'm making fewer of them, but they're still there.

It's funny. I read dozens of trading books that harped on psychological issues in trading. I thought they were all silly. I never made emotional mistakes when I was trading for fun.

But when I needed the money, holy cow, I made every mistake I had read about (and some that I can add to my own book some day). I began to hate blogging because every day seemed like more of a failure than the last. I wasn't motivated to let folks know how stupid I was being. No one wants to read about a trader who loses money. I certainly didn't want to write about one.

I think I'm more ready for that now. I think I might be able to keep some traders from making the same mistakes that I have. I hope that my struggles with my emotions in the trading world will maybe help a few of you out there make better decisions than I did.

6 comments:

Attitude Trader said...

Just stumbled across your blog.

Looking forward to reading about the insights you've gained over the past couple of years.

Thanks in advance for sharing.

-AT

Anonymous said...

"I hope that my struggles with my emotions in the trading world will maybe help a few of you out there make better decisions than I did"

A documentary film some years ago about the ferocious attitude and pressures on Chinese grade school children (and their parents), showed the immense upset and embarrassment of a youngster who failed to be elected class leader. The teacher said, "Even if you lose the result, don't lose the lesson."

Even when the only thing you've had posted for many months has been, "I'm back.", your blog still remianed my first investment check-in point each morning to see what you have learned and feel (compelled) valuable for others to know about trading. Then I go onto The Kirk report, and next Fin Viz.

Thank you for sharing the lessons you have learned.

- - joseph

# # #

buzzingstreet said...

Hey,
Current stock market conditions are not favorable for safe investors. Market is trading highly volatile. Never ignore using stoploss while doing stock market trading.
Day traders should keep very close eye on Nifty and its important levels so that traders can earn money rather than losing it.

Keep posting
Buzzingstreet

timelysetup said...

Hi, I stumbled across your blog from Stockbee website. I started from swing trading stocks and currently doing extensive research and testing trade setup on intraday ES futures.

I look forward to hearing the lessons you might have.

Good luck.

Andrew said...

Thanks for sharing and posting all this info on your blog. Can i ask why you gave up on stock screens? I have read all of your past entries yet but were they not working? I am currently looking at the AAII screens in order to devise a mechanical strategy that "works". I would be interested in your insights. I will go back through your archive of blog posts as well. Thanks again and best of luck to you.

Scott said...

Andrew,

I didn't quit stock screens because they weren't working. They were working very well for me. But I wanted to try a strategy that provided an easier way to make money consistently so I could rely on it for an income. I looked into actively day trading, and it seemed that had the key for me. Unfortunately, it was very different from the mechanical trading I was used to and my emotions got the best of me. I've since considered putting longer term money into a "screened" account and am looking at AAII screens once again. I might start blogging again about stock screening in the future. Who knows.