Purpose

After more than a year of being away from the market's, i'm back. This blog is meant to journal any thoughts, ideas or emotions that cross my mind as i go through my trades. I hope that by getting it all in one place, i will avoid 'running around in circles'. In my short history of trading, that seems to be the case much too often.

A little bit of history, to myself and whomever reading this. I started looking at the markets in the year 2004. After returning from my studies in NZ, i was at a point of wondering how i could make more money. I had shortly started work already, and was looking at a bigger picture. It was there that i stumbled on an advertisement on options trading.

I'm not sure what exactly was it about the ad, or the 'introductory' seminar that got me, but i was willing to commit 5k of my cold hard cash to 'learn' more. I had no idea what i was getting into. On hindsight, it was the best and worst 5k i've spent. Best in a sense that it was my starting point of hunger in wanting to master this trade (no pun intended). Worst, as after all i've been through, i believe that guy was a hack.

In the next few years, i started an account with OptionsXpress with 5k USD. Lost 30% of that in my first year. Pumped in a similar amount in dollar terms and shifted my account to ThinkorSwim because of the commissions and i wanted to trade stocks. There, i lost 20% of that in 2007, and i took a step back from the markets in August 2007.

Today, i'm back in the game, and after a lucky first run. My beginners luck finally kicked in perhaps? I made back all i lost in 2007, and i'm raring to go in early 2009.

What has changed? What have i learnt that will make this attempt a more successful one?
1) Dozens of books later, i've learnt enough theory to understand that it's not the complexity of the trade method. It's a sound system that makes sense, psychology that helps you achieve consistency, and excellent money management.
2) I've learnt to not be too compulsive in selecting my trades. I had a tendency to chase too much action, and end up running in place. That said, i'm now more patient; an analogy of me and the markets akin to a hunter stalking his prey and laying traps/ trades.
3) I'm more self aware of how i feel. I recognise that i'm probably not gonna be able to eliminate being emotional completely, but i'm more able to control my actions/reactions from that. I watch for wanton fear and greed by trying my best to remain objective. What helps is that i make my trading decisions after market hours so that market hours are simply kept for executing orders.