To Wait Or Not To Wait

For those new to my trading blog, here are my shorter-term goals in trading over the next year or so:

1. Trade 5 days a week (daytrading).
2. Make the profits I need to support my kids and I (for now $300/day) in 1 hr or less of trading a day.
3. Use as little capital as needed to make as much money as possible in the timeframe I want to trade in (< 1 hr/day). 4. Keep trading as simple as possible. These aren't grand goals to get me to millionaire status quickly, but they are goals that help develop discipline, good money & risk management while still developing my skills. What I've typically found is if I follow my written trading plan and strategies well, the $300/day can be EASILY made in a very short amount of time, usually in less than 1/2 hr, and often less than 15 min. When I worked as a senior level engineer, I was getting paid more than $300/day on salary, but it really wasn't a whole lot more than that. Yes, I did get benefits that put me in the $400-500/day range overall, but some of the benefits that I get with what I'm doing now are:

- being taxed AFTER expenses rather than before because of how I have the trading setup (this makes a huge difference)

- buy less gas as I'm not having to drive that far distance to work, and less wear and tear on my vehicle, also, since I'm driving a lot less, my car insurance is lower

- since I'm doing something I love, my health has gotten tremendously better

- do not have to dress up for work, so less money for clothing

- things I could not deduct before, many of those things are tax deductible because of my business structure

- rarely eat out as I cook the majority of time and can control what is in the food, which is way healthier than eating out

All these things contribute to lowering the amount of money that is needed to live on. Of course, there is my debt situation. My focus is on creating wealth, generating money in the stock market, not on DEBTS. Whatever you focus on more, you'll get more of. Yes, I need to and want to pay everyone I owe money to, but for now, I need to continue to work on becoming a better, a consistently profitable trader.

Each day as I trade, I'm identifying areas of my trading that are needed to make me that consistently profitable trader. One has to be realistic, but at the same time, you do not have to focus on things that are negative.

As I've been periodically looking at other trading blogs, there is a lot of content others have with charts, commentaries and all this. You'll see some charts and videos periodically here, and some personal opinions. Yes, I am wrong at times and that's totally okay.

I'm really working a lot on the psychological aspect of trading and learning how to juggle everything, not making excuses. Today I do physically feel pukey. But, I still traded and worked through that. Did it cloud my judgment? I don't think so, but I did make some unwise trading moves today where I gave back profits. There is still much to learn.

One of the things I also saw was that I did have profits on my costing trades to end up being costs. Why? On a couple of them, I was on a shorter timeframe (1 min.) and didn't bother to check the 3 and 15 min. timeframes (the ones I normally use). It showed I was already at a bottom and that meant I was supposed to move my stop up and capture less profits, but still profits. By the time I realized that, it was too late and I got out at costs on those trades.

Many of us what to optimize our trades to get in at the very bottom for a long position and get in at the very top for short positions. Is it possible? Absolutely. However, it may or may not be there that it reverses, so sometimes waiting for confirmation is a better thing than to risk it, unless you have tight stops or are willing to wait.

Other times, it's best to see where the target is and begin taking your profits before it reaches the target, which can be ideal if it turns and begins going against you sooner, you'll be glad you got out. Then, there are those times that not only does it reach the target but continues in your favor A LOT and you're already out of the trade. In my case, I'm usually only trading 1 contract, and if I'm out, I'm out. I can always jump back in, but yet, commissions and the gaps between the trades are what I'm missing out on. Well, profits are still profits and I'll take every penny.

A trader suggested I do trailing stops. I worked on that this morning and could not seem to get it to work the way I wanted to, even though yesterday I had tech support to guide me. I'll have to figure it out myself but without real money on the table. It got to be quite costly. It's a great idea.

So, know what you want. Have goals set and figure out how you're going to achieve them. If you want to make X amount of money in Y time, you can figure out how to do it. It'll take time and experimentation. For some, they can and want to spend all day at the computer. Great. Others do not want to trade but an hour a week or a month, great. Figure out what you need to do to get to what you want.

Anyway, time to go to my small group for church where I can get and give encouragement to others and to pray for them. I bless your trading.

0 Responses

Amazon Store