Trade The Journey

Trade The Journey

Experiencing the Knowledge!

Although the name has changed, the content remains the same.

Trade the Journey is the new name of this site. Hold tight, as I continue to make changes to make this site even better.

I’ll begin this post by detailing my experiences as a burgeoning trader. Last week I accomplished my first goal, which was to complete over 500 trades. Each Trade required the same attention and focus. It’s akin to the surgeon’s focus as they operate on a victim.

To be honest, it took time for me to learn what to focus on. The only indicator I use is the RSI indicator. I trade primarily using Level II quotes and time & sales data. The chart is a picture of what has already transpired, so I use the chart to remind me of what happened in the past. For some reason, I’ve done better without any indicators on the chart.

 

*Message

What traders/institutions/funds are possibly thinking are in the quotes. The confirmation of the direction or the misdirection your opponents may attempt is in the time & sales. The charts are evidence of the actual direction. Be careful of the trickery.

 

There were times that I lost focus, attempted to predict what happens next, and doubled down on a losing trade. I’d catch a trend, become fearful, and exit the Trade with a small profit, missing the rest of the upward trend.

Last Friday, I accomplished my second goal of exiting the trade session with a $500 profit. I remember being nervous that the trend would reverse. As the stock was rising, I asked myself if I’d be comfortable with the trend reversing?

Since the answer was “yes”, I proceeded to the next question. What is my profit target? I thought accomplishing my goal for the day would be enough and decided to exit the Trade when my Profit closed at $500.

It did.

For a minute, I was speechless. Never did I imagine that I’d be able to earn $500 in one day. Albeit, paper profits, I gained experience and some self-confidence.


Journal – 01/20/2020

 

Never Trade when you’re tired:

Last night, I decided to practice on my trading skills using the thinkorswim on-demand feature. This feature allows you to select a day and time in the past and Trade as if the day were today. I decided to trade a different stock than the usual stocks I practice with. I decided to trade Facebook, and almost instantly, I regretted the decision.

This stock was volatile and would fluctuate at least .20 in close to 10 seconds. Before I knew it, I was down close to $1000 in paper profits. I’d trade it down to $500 and lose focus. I was tired, too tired to follow the movements, and after a while, I threw in the towel.

 

Catch the Trend:

This morning, I decided to earn the money back I had lost yesterday. I was in the zone this morning. The zone is where you are attuned to the market’s movements. It’s hard to describe “the zone,” but I’d say its an intense focus and raw assessment of human emotion at the moment.

You can feel where the stock is going and where it must test before it moves higher. I caught my first trend and just like that; I was able to recoup the profits from last night. Ironically, I lost all of it because I fought the trend. I assumed that I could pick the turning point. Fatal Mistake and I lost it all again.

The stock was heading downward, so I added to my short position, and I thought myself to be a genius. And then the stock rebounded. Thinking it was a short run, I shorted an additional amount of shares. The stock kept going up. The stock went straight up with no breaks or pullbacks. I stared at the screen, horrified, unable to exit the trade.

Finally, I said, “this enough” and exited the trade. My stomach turned a couple of times.

 

Computer Glitch

Eager to test my rebounding skills, I selected another day. By mistake, I picked a day a week ahead and lo and behold; the stock earned a profit of $10,000.

 

Back to My Old Habits:

Once again, I believed that I could pick the turning points and got crushed. Finally, I got the lesson, make sure its a trend before you switch your perspective on the direction the stock may head. The stock heading downward reversed directions and headed upward, so I paused to assess the strength of the trend.

The trend seemed to be healthy, so I joined the trend and rode the wave upward. I felt the fear of knowing that at any time, the stock could change directions, so I let my profits run.

 

Ultimate Lesson:

The power of perception can trump the power of knowledge.


 

This week in Review. No major incidents or spending lapses. I’ve kept a bulk of my money on the sidelines. Lately, I’ve been attempting to cut down on the subscription services. It seems as if every cable channel is forming an online streaming app.

Everything is being monetized. What a world we live in?

Wages are growing at a snail’s pace, yet the amount of daily activities/services being monetized is growing.

 

I could be doing much better, so I’d like to give myself a “C“.

Questions? Thoughts? Corrections? Directions?

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