From the newbie desk: returns expectations

[Scataphagos]

he is here asking for advice. Let's not shit on him.

Aw... come on. That's what we do.

 

[VicBee]

Did you treat yourself at least OP? did you buy anything nice? reward is as important as compounding otherwise what's the point...

I bought an apartment in Mallorca, Spain. Perfect retirement spot!

 

[VicBee]

Percentage returns. Its better to not think of the money as real (like casino chips). As your account grows the $ figures will affect your emotional state especially as the numbers get bigger.

If you stick with this, there will be a year where you will give back multiple X's your salary benchmark. Expect it and plan for it and in the meanwhile continue to grow your capital.

no way, I'm not giving anything back to the monster!

 

[VicBee]

Well reading "between the lines" suggests to me that you know what you need to do but yet you want someone else to tell you to do it.

The goal of each day should be to follow your trading plan. Having a daily goal/fixed amount should not be part of that plan. If it happens great. Volatility ebbs and flows. If a market moves 2% one day and 0.2% the next day how can you try to get the same profit amount from each of those days? PA controls, we can only follow. Last year was last year.

Percentages sustain, amounts thrill. So does Vegas.

I think I've been putting a lot of pressure on myself to make my daily numbers, based on 2020 achievements. Since I didn't know better because I started trading in 2020, I sort of expected to do as well in 2021, despite warnings from friends who have been trading for years. My thinking was if I apply myself the same way, I should get the same results.
Of course, when 2021 rolled and the market dipped, I had no methodology to work through it. I tried swing trading, only to find that I was way off the timing and took months to accept taking losses, which were as exciting as the wins. I learned that I have no patience for months or even weeks long trades. I learned that for me it's not about the money as much as figuring out how to enjoy the game. It's addictive and, for those prone to addictions, it's a monster to always stay on top of. I have been spending most of my time since the beginning of the year absorbing basic stock trading techniques (hello shorts...) and hope to squeeze a profit this year, provided the market holds.
I'm not as methodical as some of you are, but I'm intuitive and try to frame intuition into method, if that makes any sense.

 

[deaddog]

Well make it a hobby instead of a business. You expect hobbies to cost you money

 

[VicBee]

Well make it a hobby instead of a business. You expect hobbies to cost you money

that or be more picky when to trade... I've already stopped trading anything going sideways.

 

[HobbyTrading]

Well make it a hobby instead of a business. You expect hobbies to cost you money

Exactly. And when that hobby returns a profit you'll be double happy.
Having said that, you can still approach the hobby in a business fashion.

 

[tonyf]

I bought an apartment in Mallorca, Spain. Perfect retirement spot!

Well done we try to go there every year.

 

[tonyf]

I think I've been putting a lot of pressure on myself to make my daily numbers, based on 2020 achievements. Since I didn't know better because I started trading in 2020, I sort of expected to do as well in 2021, despite warnings from friends who have been trading for years. My thinking was if I apply myself the same way, I should get the same results.
Of course, when 2021 rolled and the market dipped, I had no methodology to work through it. I tried swing trading, only to find that I was way off the timing and took months to accept taking losses, which were as exciting as the wins. I learned that I have no patience for months or even weeks long trades. I learned that for me it's not about the money as much as figuring out how to enjoy the game. It's addictive and, for those prone to addictions, it's a monster to always stay on top of. I have been spending most of my time since the beginning of the year absorbing basic stock trading techniques (hello shorts...) and hope to squeeze a profit this year, provided the market holds.
I'm not as methodical as some of you are, but I'm intuitive and try to frame intuition into method, if that makes any sense.

The one advantage of hitting a big win upfront or earlier on in your investing career is that it makes small returns more meaningful. Your daily needs are met easier (less performance required) if your capital is 8x your salary as long as your expenses (and tax bill) stay under control.

I am personally a bad loser and follows buffet advice as closely as I can: never lose money.

 

[VicBee]

The one advantage of hitting a big win upfront or earlier on in your investing career is that it makes small returns more meaningful. Your daily needs are met easier (less performance required) if your capital is 8x your salary as long as your expenses (and tax bill) stay under control.

I am personally a bad loser and follows buffet advice as closely as I can: never lose money.

I don't like losing money either, and the losses are commensurate with the wins in absolute value. But the worse feeling yet is when failing to capitalize on opportunities. I got caught in the AMC debacle and left with my pants down. The loss was such that I held on, hoping for anything better than what I was left with. Weeks later (an eternity really) the price hit 18 and I rushed to sell all at a much reduced loss, then watched over the next 5 months AMC hit 72. so not only am I left with a real loss in my books, but a huge hit to my ego. Luckily, it's written in my plan... thou shall never woulda, shoulda coulda.