Updated: Nov 17, 2019
Hey there! I hope you had a fantastic week. Overall my summer has concluded as tomorrow I will be returning to school at Texas State University. Let me say that this past summer has not been what I intended. I did not go on any fancy trips or doing anything spectacular to remember, but I must put things into perspective. I am only 20 years of age! When I look back on this, I know it will be worth it. This summer has been full of memories, to say the least. In the future, I do intend to travel with my loved ones and close friends. Doing so won't be easy. I must earn the right to Travel to places, the cost is not cheap. For example, I did intend on traveling to Europe soon with Family and Friends soon. I don't want to rush into things, must take it one day at a time. I still can't believe that it has been 56 Weeks! I know that the very few people read my post, that's simply because I have no Track Record. That is completely understandable. For those who subscribe or my viewers, I would like to say thank you for being apart of my life. Please feel free to leave any suggestions. I made to a promise to my early subscribers, and I do intend to keep that promise. It just takes time. Thankfully I am only 20!
If you read the last post here you know where I'm at in my trading career. I've come to another crossroads, but again it's all about ADAPTATION. Never be complacent with your current situation, always be on guard for anything to happen. Life is all about how you react to things. As Charles Swindoll said, " Life is 10% what happens to you and 90% how you react." This past week I was expecting something to go in my favor, but that expectation was unfulfilled. I was devastated the entire day when I found out. Until my Mother talked to me, Moms are the best. She knows how much Trading means to me, and understood how devastated I was. We had a lengthy conversation, but in a nutshell, she told me to put things into perspective. That I had everything going for me, school, expenses, lifestyle, etc. Sometimes I just need to take a breath and realize that she's right. I just get impatient. I want it right now but must understand that life is full of surprises and its how you react to them. This goes for anyone. If you are dealing with any difficult situation, just know that it is temporary. Everything in life is just temporary. Once you realize that its a game-changer. It stays the same until it changes. So what the game plan? Let's dive right in!
Alright so over the next couple of months I will be Paper Trading. Again I have been Paper Trading over the past year I have been building my Methodology. I understand that many don't believe Paper Trading is a great way to trade. The most often statement said is that Paper Trading does not involve the emotional factors compared to trading with real money. I couldn't agree more, but who said you can't utilize Paper Trading to build your methodology. A decade ago, this feature did not exist, why would I NOT take advantage of this opportunity. Believe me, I would rather trade with a live Monetary account, but everyone had their own unique journey. I GET to build my Methodology for the next 4 MONTHS! I will TRACK, TRACK, TEST.TEST, and REFINE. I must think of myself as a Scientist. Understand that I will be taking this as the real deal, as I have done before. The previous sample size I started with 5K and grew that to 23K until $RKDA took 11K from me. Market Tuition. Once again I will be starting with 5k, making it one trade at a time. I will be under the PDT rule, but I will be giving me 9 trades a week, as when I plan on opening a Joint Account in the future. A joint account will give me the flexibility to have 9 Day Trades. Understand that I don't need to TRADE every day. As I found out in the past sample size, the less I traded the more profitable I was. Seems counter-intuitive but hold true. Know you may be asking what do I mean by Sample Size. Allow me to explain. I will have a 20 trade sample size. It's far easier to evaluate a small batch of trades, rather than a large sample size. I will take the calculated risk. Meaning that my sample size will be determined by how much I am willing to lose if the ODDS do not go in my favor. I trade from a series perceptive. Most importantly I can't change my $$$ FIXED amount once my sample size has begun. I can only alter the fixed risk amount at the end of the sample size, not in the middle, only the end. So the question is how much Am I going to risk? Given that I will have a 20 trade sample size, and will be starting with 5K the risk will be $250 per Trade. Meaning that if I were to lose all 20 trades, my account will be wiped out. Understand the odds of that happening are as low as me Winning all 20 trades, virtually nonexistent. Over the past 3 sample sizes, I NEVER lost 3 times in a row. But again I have zero expectation. ALL I EXPECT IS SOMETHING TO HAPPEN WHEN I PUT ON A TRADE. I don't have to know, its simply a random distribution game. Odds and Probabilities.
So what is the goal? To STAY IN THE GAME. There are vital components to succeed in any competitive game. You must have and ADVANTAGE and most importantly you must STAY in the game. Again I am going to be unbiased when I go into every trade. I will explain this more clearly in the video recap. My market data shows me that the vast majority of the daily runners fail to hold their gains, but it's not an exact science. The major goal is to focus on my LONG strategies rather than SHORT. My past trades reveal that I profit primarily from my shorts, but I need to have a forehand and a backhand. I need to go long. Shorting with a small account is extremely challenging if you don't know what you're doing. As Uncle Ben said With great Power comes great responsibility. In the Market we are in right now Shorting is very dangerous. In my opinion, nothing is dangerous as long as your willing to stick to Rule#1. Perhaps shorting is just my personality, but I will see what my sample size reveals too me over time. Again trade your Personality. I will not force trades, I will let the trades come too me.
Alright, now that's the game plan. Below I am going to talk about what I am and what I am not. I just to clarify for any new readers who I am. As well I will likely go on a Rant. If you don't like to read, then check out the video recap I assure you it will be a gem.
There is a big misconception about this game. People always ask what do I do. My answer is always the same. I say I'm in the game of losing, their reaction is often priceless. A second common question is how much have I made or very similar is the pay great. My answers are always the same. Is does not matter how much I have made because it only takes one trade to give it all back. Wining is easy, Loosing is far easier. NEVER get COCKY or the Market will humble you. This is not like a normal 9-5, you don't get paid for sitting their or educating yourself. This is a game of waiting. I often find it Boring. With that said if you master your personality, this profession can compound money like no other. Like any endeavor, it takes time for long term success. 90% of Traders don't make consistent gains in the Markets. Far more give up too early in the start. Don't! The Beginning is always the hardest, life rewards those who work at it.
Another common statement I hear is that "It's Gambling" or "It's your Hobby." When I hear those two statements I simply just walk away. Again every day we have a finite amount of energy, and I don't want to waste it on an argument. Depending on the person, I most often that clarify how those statements are far from the truth for ME. Yes, those statements are true. If you agree with that statement, then you're likely apart of the 90% of Traders who lose. The great Ed Seykota one said, "Everybody gets what they want out of the Markets." If you have the Mindset that Trading is Gambling, then the ODDS will not likely favor you. As well if treat Trading like a hobby then you'll likely find it extremely difficult to create a Trading Methodology. What do I believe?
TRADING is NOT gambling: To put it short I take calculated risk oppose to just throwing my money on a single trade. I highly recommend giving this interview HERE with Modern Rock on Chat with Traders. It's a must for any given TRADER. I'll post the link above. Gambling would be trading randomly with no risk management. Those ingredients will most likely lead to a random result. Gambling, in my opinion, means that there is no competitive advantage. Or in other words no EDGE. Again The markets will give you whatever you want. The vast majority of Trades, don't trade with a clearly defined edge. With edge on your side then it's simply a game of probabilities and odds.
TRADING IS a BUSINESS NOT a HOBBY: See you must treat Trading like a business! A hobby is something that you do for fun. For example, playing sports, traveling, etc. You get the point. This is a business, and like any business, there is a cost of tuition. You don't lose money in your HOBBY. As on the great traders said, Work like a Pro, Act Like a Pro, and Train like a Pro. If you can name that Traders name, I will give you a gift.
If those points don't make my point, then give the video recap a view. If not then simply leave a comment.
Update: As I write this it's week 56 in my Trading Journey. I don't know where I will be in 1 or 5 years, but I know that I am in complete control. I know that it will be worth it. Tomorrow is the start of the Fall Semester. I am looking forward to all the wonderful opportunities to come. Take it day by day. Every day reveals a level of my development as a Person. When I look back, I will just know that I was just an ordinary guy with an Extraordinary work drive. I was obsessed with the game, money was the byproduct of my skill. Am I wasting time? If so, then it's the greatest waste of time I can think of. This is my lifestyle. I know that a few read my post, but one day I hope many will learn something from it. Anything is possible with GRIT and PATIENCE. I will always remember why I got into Trading.