No, the markets are not open. But I am still doing some trading activities that only a few people know about and do. Is it hard? No… well, it all depends, you see you got face up to what is wrong and some people don’t like to know where/when they are wrong! (See it all depends … on how big your ego is hehehe) Anyway this is what I do… Like most people, I like to sleep-in on weekends. But since I wake up early anyway I use the time to just let my thoughts wander or meditate, pray, think about my trades, what have I done, what I could have done better, did I make winning trades by following my rules, system, procedure and activities. Just like any business, you need to make a “performance review”.
This week had been a very busy one with lots of transactions that I have to depend on other people to finish. In my earlier years, when I think I am going to be very busy, I don’t want to open new trades, however, that meant that I am not able to do my business, and consequently miss income targets. What helped me is my trading procedure that I share in my book “High Heeled Traders” which gives me a structured guide that still let me execute my activities. It features more than 30 data checkpoints, very comprehensive and tailored, works very well!
The problem this week is that I took shortcuts. HAHAHA Because you know, I am so busy. 🙂 I am sure you’d agree, it is one thing to have a guide/rules, and one thing to follow those rules. The good thing is that the result is not too disastrous, (keep tuned for clues below) but I could have made much more profit (remember the golden rule of trading: “let your profits run” ). I could have bought more shoes LOL…
Anyway, I took the trade on Tuesday when BHP volatility reading is very low, (less than 10c move in the day when the normal move is 50c in a day) and considering that it had a good run up in 2 weeks ($3.30 from the normal $2) and the Resistance level hasn’t been breached, I thought there is high reward potential on the fall in price. My blunder was, I didn’t complete all the data points to check, and the next day, is a Company Reporting day. The stock soared the next day up by 80cents or so. I was laughing at myself because I was in 2 minds whether to enter the trade. I even entered a trade that was far from the last executed price, and went on my merry way to my first-ever, long-overdue spa date with my sisters. (You can tell I was busy! LOL) But the good thing is, I followed my position sizing rule, which is “how much I am risking” or cash allocation for that position, allowing me to still enter a trade where I think there is also a high reward (again on the fall in price) as this market is volatile and had been stretched up with the S&P Index again reaching record highs. The fall that I expected happened yesterday and the week ends with the earlier trade close to break even and second trade with 37% profit.
I still remember though that, when losses mount, your wins are few and far between, it can be difficult to face up to the losses. Difficult to move forward. The fear is strong. However, know that your next best step is to educate yourself. If you are not making as much money from your business, the best way (and I know this from experience) is you have to improve your skills. And that’s not just knowledge in your head, but to develop your whole self to do it. The risk in investing starts on the investor actually. If the investor is not very knowledgeable in assessing and managing risk, then the investment will be a failure. So if you are committed to your financial and life goals, let me help you with my Retirement Investing and Income Investing webinars and workshops. Email charmel@highheeledtraders.com for our next schedule. All the best!
