Friday, 4 March 2011

morning thoughts

Its funny how all this influences me on subconscious level. I feel like I'm constantly in the market, even when I'm not looking at charts. It's like my brain is processing levels, figures, movements, strategies, plans, what i need to try out, test, look, read, check.....and that happens all the time.

I've over clocked my processor (brain) :-)

This causes me to be really burned out at evenings, cannot really think anymore. Do you have the same problem? Sometimes I even dream trading ...

As much as I'm trying to distance my emotions and myself from trading, it's not quite working. It looks like it took control over me and like an addiction, is always present.

Am I enjoying the trading itself? It's really a hard question. For me it's more like a battle with myself, and a struggle that this is something that has to work out for me, to pull me out of the poverty and uncertain future.

Then I say to myself, did you have to choose the most volatile, uncertain and riskiest business in the world, that should get you out of the uncertainty of the corporate jobs, mortgage payments and other shits I’m experiencing... Didn't I should choose something easier instead?

And the answer is I don't know. The expression "It takes money to make money" hit me over the head the other day. I see people earn enormous amounts not risking anything, and I'm here, risking my small savings and putting it on the line of fire, to earn something for a living? I don’t want to be a gambler. But it’s not only the job, it’s also some health problems that I’m experiencing and that are working against me … So here I am, doing exactly what I shouldn’t be doing, trading for money, trading from a pure need.

It’s like it doesn’t work that way. First you need to have money, then you should have the money you don't really need, then you have to learn to trade, and then you could put it in the markets and try out your skills.

So, what I'm doing is completely different. I'm looking at it as a longer term project, but still, there is always doubt, if this is right thing to do?

I read somewhere; this is really hardest easy money you can ever make....


  1. Kingich,

    Where to begin? I know where you are coming from, and you are clearly speaking from the heart when you post. To be passionate about trading is a needed requirement, that’s how we learn and become better at what we do, but we can not allow trading to consume all our time, money, emotions and mental wellbeing. I made a list of priorities in my life that matter more than trading.

    1. Mind & Body
    2. Family & Friends
    3. Self Improvement
    4. Social

    Assuming you have an edge/method that you believe works for your personality, I believe the real secret to trading profitably comes down to money management. That’s where the mental discipline comes into play, but as I mentioned before, the mental preparation is based on your priorities in life. If you allow trading to consume you, you leave your self vulnerable to ignoring the basic trading principals of what not to do, such as trading emotionally, disregarding stops and impulsive trading just to name a few.

    Easier said than done I know; especially if you are dependent on your trading income to pay the bills and provide for a family. I agree with you 100%, that trading is one of the most difficult professions to maintain any long-term success in. However, the old adage that “it takes money to make money” needs to be put into perspective in regards to your own financial situation and lifestyle. Losing money is definitely apart of trading, it’s not uncommon for a trader to experience a string of losses, and in some cases blow out multiple accounts until they become consistently profitable.

    1. The 1st goal in money management not to blow it all on one trade, a steady rate of return should be your focus.

    2. Seek realistic returns, I personally had to lower my goal of 10% a month to a more realistic 3-5% a month; for every month I have a 10% gain, it could have been just as easily a 10% loss or more. Leave your self cushion for the losses, they be cant avoided.

    3. Slow and steady, for long-term success, it has to be done under the context you’re growing your account size which will allow you to increase your trading size.

    Well, that’s my $0.2 on the matter, best of luck to you.


  2. Duane, thanks a lot for your time and effort to write me in such great detail.

    You're of course right, first health, second family & friends, and then everything else. I agree with all you've said, and cannot do anything but accept things the way they are.

    Grow slowly in and disable that trading influece other parts of my life.

    I feel like it's a total chaos now in my head :-) Just waiting for a workday to end today....

    Best regards Duane and have a nice weekend!