Trade The Journey

Trade The Journey

Notetaking and Profit Taking!

Well, Kind of!

This marks the first week of trading I completed while also recording my reflections. I have to say; It’s becoming a little easier for me to lose money and harder to earn money.

Several reasons come to mind like overconfidence, attempting to predict rather than observe, and self-defeating assumptions.

I’ve come to close to profiting (Paper Trading) $500 scalping within an hour. I’ve also come close to losing the entire profit in minutes.

Instead of relying on my original presumption of the stock’s direction, I switch, thinking I could profit in both directions. It takes incredible skill to do so.

The end result is that I always get caught in a losing trade after a couple of winning trades. If I had waited for the stock’s directional movement to play-out, I would have profited from most of my trades.

 

So when trading with real money for godsakes, let the trade play-out!

Currently, I am both paper trading and swing trading. As mentioned in the previous post, you need about $25,000 to begin day trading. Unfortunately or Fortunately, I do not have the required $25,000 to day trade, so I switched my style to swing-trading.

There are so many styles and timeframes that you can choose to trade-in. Surprisingly, I have found that I enjoy scalping. Scalping is a more involved style of trading. It’s more fast-paced than even day trading being that your only maintaining a position for seconds and at the most minutes.

This style of trading isn’t advised due to its pressure and increased chance of losing big. Scalping requires intense focus and can deplete your mental energy quickly.

 

In the overall scheme of things, scalping is a useful skill to learn. What it helps you to do as a trader is to Imagine!

Often when swing-trading, I look at multiple time frames to get a general sense of the direction the stock is heading. I’m not attempting to predict but assess the stocks’ position.

Scalping can help you develop a sixth sense and along with the research and preparation, you’ll begin to develop foresight.

 


About six months ago I thought paper-trading was a useless strategy. It’s not real money. Why not practice with real money on the line?

For some, that may work, but for me, paper-trading has been invaluable. Similar to a bear hibernating through winter, I have been conserving my spending and investing energy by saving. Due to the erratic nature of my profession, it can be hard to predict when my income may dip.

For the coming months, I have relegated myself to paper-trading and learning the trading platform. At times it’s boring and at other times its been a relief. I get to make costly errors without losing real money.

Once this site is revamped, I’ll be uploading some of my trading notes to help those who are still learning like myself.

*The chart listed as the profile picture is a chart that I captured during a trading session. I’m becoming more skilled in drawing trendlines and channels. This channel held for some quite some time.

 

Spending

I’ve been doing well as I take note of the prior week. The budget I developed has helped to curb my spending appetite. A few errors but nothing costly.

This past week deserves the grade of a “C+.” Things weren’t perfect, but they are manageable.

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