Saturday, January 17, 2015

Goodbye for awhile...

At the start of new year, I went through some reflection & goals setting... My initial inspirations to write this blog was to share, diary log & learn... possibly even attract some funds for me to manage...

But now I felt it maybe time to take a break from writing & focus on my mind cultivation to transcend to next level. As a parting note, I talk about the 3 Ms of trading, the mind method & money.

Most beginning investors/traders/gamblers, they focus on the method. How to evaluate a business with PE, NAV, PEG, EVA etc. The "correct" indicators setting,  the trick to poker or any other games.

Despite best designs n efforts, methods do fail, if it succeed everytime then they could have been programmed n boom... everyone become a millionaire. There's no need to work, just subscribe to the holy grail method... Markets go through ups n downs, and best systems also need to be tweaked from time to time. Instead of finding the method that work (much like how to live forever...) it would be better to manage the method when it fail through the other 2 Ms.

The money talks about having stop loss limits, basic capital to start (eg. $5k) and so on.

The mind talks about individual, temperament, how we handle trades both when its winning and when its losing.. aa well as handling boredom, drawdowns and so on.

Personally I can find winning trades, but sometimes being too eager to deploy my capital; I stare at charts so hard that my mind begin to wonder n convince myself what I hope to see. That's not good, being objective is important,  even more when chart give conflicting signals, the worse is having bias and miss the big real picture.

Another problem I have, is once I am in a trade, I tend to be too eager and read too much every single candlestick/price bar that comes after. Candlesticks only works usually at price of extremes near support n resistance; to read every single candlestick and find meaning confuse myself from the initial setup that I went in for. Also, most setup requires weeks to develop, grabbing profits too early & missing the developing pattern or exiting at the slight pull back when weekly patterns is forecasting a multi months uptrend... all these results in cutting my winnings.

Lastly, there are opportunities almost everyday, some developing, some subpar... jumping into everyone is a sign of overtrading. I dont lose when I keep money in bank, I lose when I buy at the wrong time!

These are some lessons then I reflected and pray hard that I will wise up and not repeat them again. A true transcendence comes when I stopped making these amatuer mistskes, then my return could transcend to double digits and above.

It can be done, my peak performance has already done it before but my mistakes reduced them to single digit return which I must avoid.

To sum it up, the mind is our greatest asset and enemy, we can only improve when we throw away our old self and mold our new self. Select the goods n discard the bads... scrutinize which is which.

May the trend be with you... perhaps one day I shall return to blog again...

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