Trade The Journey

Trade The Journey

Reality Check!

Returning from the Thanksgiving Holiday trip with the weekend ahead of me felt good.

Most of the week, it rained heavily and was a nightmare to travel in.

Although the trip turned out fine, I felt that it could have been better. Traveling to the casino was nervewracking while it rained. Some of the travelers decided that the rainy conditions didn’t warrant slower speeds, so they hurried to their destination with reckless abandon.

When I arrived at the casino, I felt relieved and excited to celebrate thanksgiving. While in the casino, I engaged in light reading and research.

I came across a book called “Traders Pendelum by Jody Samuels” during my search and decided to download the book. With the book, extra exercises and sample plans were able to be accessed to examine through the book’s companion website.

After reading through the first couple of chapters, I decided to complete the trading business plan while reading the book.

 

Eager to prove my sincerity in improving and advancing my trading skills, I took completing the business plan seriously.

 

Luckily, I have experience in completing business plans.

I’ve done several of varying complexity.

The intricate plans are usually well-thought out but generally too complex to be applied. The more straightforward plans were more comfortable to implement and change when operating in the real world.

My first step was to tabulate the last two months’ expenses and complete the budget. To my surprise, my expenses had gotten out of control. My income no longer covered my expenses, and I experienced a loss in the amount of wealth I had accumulated.

Forming my budget allowed me to remain optimistic amid a cash flow shortage and bad money management. A trading plan is a serious plan that I believe every trader needs to reflect and formulate.

 

Without proper money management, my trading career would indeed be short. I need to ensure the money that is available to trade won’t be required for any other areas of my life.

 

Using the “IF” function in Excel helps me instantly see whether this month’s monthly spending plan allows for trading. Mainly, I’m looking to see excess in the amount I have spent and saved for the month before trading.

This week I’ll be uploading parts of the excel document for you to view.


This past week, I’d like to give myself the grade of an “F.” Procrastination will cost me a new television. Instead of purchasing the wall mount for the TV as I had planned, I waited. This is after my father suggested I buy a wall mount twice.

So instead of spending $40 on a wall mount,

I’ll have to purchase a new television since the warranty

doesn’t cover breaks.

I spent the money I earned recklessly this past month, mostly to cover up my emotions. After spending today formulating my trading business plan and journal book, I feel confident.

Perhaps the problem with my spending plan was that I had no immediate, specific goal I was working towards. I was saving and investing because its the smart and right thing to do. There’s nothing wrong with this psychology.

 

However, what will keep you focused in the lean and challenging times?

A couple of bad purchases sent me straight to my savings and investment account for relief. So for these reasons, I earned an “F,” which stands for failure in proper money management.

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