I've been looking for a place to gather my thoughts on trading, and a journal seems to be as good as place as any.
Although this journal is mainly for my own record, I'll provide some details about myself in case anyone decides to follow it. I'm a 28 year old guy from chicago. Like a lot of people on ET, I "gave it all up" to see if I could be a trading success. Well, officially, I left my job as a computer consultant with IBM to pursue a masters degree in financial markets. But, unofficially to dedicate my efforts into seeing if I have what it takes to make it as a professional trader.
I began pursuing my degree and learning about the trading world in September of 2004. Over Christmas break, I made my side project getting my computer set up with all the tools I need for trading practice: Specifically eSignal and X_Trader TT Trainer.
With those accomplishments under my belt, I kicked off the new year with a plan to start learning to trade successfully. I spent a week day trading ER2 contracts, trying to take 0-4 positions per day.
One week under my belt, and I only have one thing to say: Wow, did I get an ass whooping this week !
I first posted a few weeks back, and had some interesting responses to my endeavor:
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"PS If you learned how to trade from your iit courses WTF do you need someone else for? Just trade your own money and keep 100% of your profits. There lies the problem with claiming you know how to trade....PS you realize that 90% of traders fail ?" --5yrtrader
"Unless you trade and can prove you can trade then you might as well read a book on medical research and then see who will hire you as a 'doctor'. --TorontoTrader2
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After only one week of doing this, I can see just what these guys are talking about.
Its funny. Like most newbies, I've read a lot of the books out there. The one that comes to mind for me is "Trading for a Living". The author points out how difficult trading can be. However, I think almost everyone who reads that book for the first time comes out of it thinking he has what it takes to beat the game. A little knowledge can be a very, very dangerous thing...especially to your bank account !
So, one week later, what have I learned ?
1) Had I started trading with actual cash, I might as well have just taken a lighter to my wallet. Fortunately, I belive that I am getting into this business for the first time in history where one can practice trading in an environment that is very close to the real thing, without a risk of damaging my account. This is a very, very good thing.
2) Knowing when not to trade is just as important as knowing when to to trade. Probably more important. I had some decent profitability a couple point in the week. Then, dummy over here gave it all back and then some on less than optimal trades.
Every book in the world cautions you against this, yet when you're sitting in front of the trading screen, its more difficult than it sounds !
3) I belive that developing a trading style that both is profitable and fits your personality is key. There are a lot of systems out there that people will sell you. However, I'm of the opinion right now that best approach is to sit down and think about what would work for you. Of course, my opinions on this may change if I go a year losing every month in a row.
As for me, it looks like its time to go back to the drawing board to start developing a workable trading methodology.
-Tony
Although this journal is mainly for my own record, I'll provide some details about myself in case anyone decides to follow it. I'm a 28 year old guy from chicago. Like a lot of people on ET, I "gave it all up" to see if I could be a trading success. Well, officially, I left my job as a computer consultant with IBM to pursue a masters degree in financial markets. But, unofficially to dedicate my efforts into seeing if I have what it takes to make it as a professional trader.
I began pursuing my degree and learning about the trading world in September of 2004. Over Christmas break, I made my side project getting my computer set up with all the tools I need for trading practice: Specifically eSignal and X_Trader TT Trainer.
With those accomplishments under my belt, I kicked off the new year with a plan to start learning to trade successfully. I spent a week day trading ER2 contracts, trying to take 0-4 positions per day.
One week under my belt, and I only have one thing to say: Wow, did I get an ass whooping this week !
I first posted a few weeks back, and had some interesting responses to my endeavor:
----------------------------------------------------------------------------------
"PS If you learned how to trade from your iit courses WTF do you need someone else for? Just trade your own money and keep 100% of your profits. There lies the problem with claiming you know how to trade....PS you realize that 90% of traders fail ?" --5yrtrader
"Unless you trade and can prove you can trade then you might as well read a book on medical research and then see who will hire you as a 'doctor'. --TorontoTrader2
----------------------------------------------------------------------------------
After only one week of doing this, I can see just what these guys are talking about.
Its funny. Like most newbies, I've read a lot of the books out there. The one that comes to mind for me is "Trading for a Living". The author points out how difficult trading can be. However, I think almost everyone who reads that book for the first time comes out of it thinking he has what it takes to beat the game. A little knowledge can be a very, very dangerous thing...especially to your bank account !
So, one week later, what have I learned ?
1) Had I started trading with actual cash, I might as well have just taken a lighter to my wallet. Fortunately, I belive that I am getting into this business for the first time in history where one can practice trading in an environment that is very close to the real thing, without a risk of damaging my account. This is a very, very good thing.
2) Knowing when not to trade is just as important as knowing when to to trade. Probably more important. I had some decent profitability a couple point in the week. Then, dummy over here gave it all back and then some on less than optimal trades.
Every book in the world cautions you against this, yet when you're sitting in front of the trading screen, its more difficult than it sounds !
3) I belive that developing a trading style that both is profitable and fits your personality is key. There are a lot of systems out there that people will sell you. However, I'm of the opinion right now that best approach is to sit down and think about what would work for you. Of course, my opinions on this may change if I go a year losing every month in a row.
As for me, it looks like its time to go back to the drawing board to start developing a workable trading methodology.
-Tony
