Trading stocks, bonds, currencies are often  thought of as a high risk, high reward, high intensity  game.    I traded like so for years.  Now that I am trading differently, as  a woman, as  Trader Mom, I wonder how I lasted.  I guess if I have not set myself thinking that I am trading to first  learn and gain experience and wanting to build an income stream  (for eventually we all would not be able to work – or get fired!), I would have quit.   I did start on this venture with the belief that  “mistakes and learning from it are part of winning”,  so I  am still trading and had now become profitable today.

Years ago, I had days though of excitement, fear and sometimes not being able to sleep when I have a trade open.  Say I just bought a bank stock and expecting it to go up but it didn’t, I would think  of what to do then. (This is WRONG!  You must know what to do in all scenarios BEFORE opening a trade – you just have  a clearer mind and not clouded with emotion) .  I didn’t know that I really do not know what I should really know  first–  to trade profitably (hehehe) . Until I came across a book that says, you first have to trade considering what you know about yourself.  So knowing one’s self is the cornerstone of great trading!   The book Market Wizards which interviewed the top traders – big money guys – we’re talking billion dollars under management here – say that they simply trade as it fits them.

It took a painful and numbing experience for me to stop and think differently though of what I thought myself to be.   After a death (I had a miscarriage), you can’t help questioning so many things about life.  What did I do wrong?   Why are some given a Life to live and some have to live so short?  What is my purpose?   I did find the answers. I thought the greatest gift that I was given were my children. That God, Life has made me a Mom because it is the best contribution I can do – “to give wings and roots” . I am good at it too, I believe.  However, being a Mom entails teaching “how to make a living” and  “trading for a living” is what I aim to do,  so I thought, that’s  what I would be,  I would be a Trader Mom.

I made BIG changes.  I traded around the time I have available,  which  is very limited with the kids’ activities and house chores, plus I also have a job (that funds my lifestyle).   I only trade short-term opportunities so I don’t have to sit glued to the computer and so I have time for all the other things I need to do.  It also changed how I assess Risk, how I value the cash I have available to fund a trading opportunity.  I reviewed my Risk limits, so that it is small enough that it doesn’t bother me when I lose it but also allow me to profit  at least 3x my money.   For example, I will open a Trade only with a risk of  $200 in an opportunity that looks like I can profit $600 from.  There are such trades, you just have to be patient. I found that I don’t have to take High Risk trades —  Low-Risk trades in fact make the Highest returns.  I also put more value in balance and well-being.  Stress greatly decreases performance and  one has to be in top condition (clear mind, not too excited – so lay off  the sugar!) to make the right decisions and think of options.

Having made these changes and having the attitude to learn  as much about the Markets and continually improve, I had become profitable and even consistent.   I can say I enjoy so much more time now with people I love, with less stress and extra income.

So  anyone else want to be a Trader ?

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In every  Trading workshop I go to, I would count how many women are in the class and we would usually make up 10%.  I wondered  why – like it’s hard?! On the other hand, in my playgroup, and favourite cafe  when they see me checking stock quotes on my phone,  many get interested  seeing how it can let me earn an income while doing what moms do (bring kids to school, play at the park)  and want to learn about Trading.  And why not,   Trading is simply Buying and Selling.  And my belief is that women do this a lot.  In our world, this is called Shopping.    I admit the main activity is the BUYING, intended  for keeps – but we do Sell or otherwise get rid  of something that has  less or no more value.    Anyway, considering  women  shop a lot, I thought we would be natural traders!  We just don’t realize it.

In fact, this could be you:

1.       You search high and low, visiting several shops, or shopping centres even  – looking for an item selling below  value for some reason.  Anyway, considering  the whole scheme of things, you want the item and is selling at a steal.  You’re a Bargain Hunter.  In Trading, this is called Value Trading.

2.       You like to buy what is in fashion.   Buying Blue?  That is soooo last year!  You would only go for what is in the new style.  You’re in with the Trend.  In Trading, this is called Trend Following  or one who follows Seasonal concept  in which weather patterns  (a prevailing trend)  dictate what would have a high demand with prices sure to move up (or down).

3.       You buy what is not in season because you  know it would be back  –In Trading this is called Contrarian or  to a certain extent Band Trading (like rubberband – stretch and go back)

4.       You buy when you see a  “window of opportunity” or loophole, or in shopping terms these opportunities  are called “Sales”– in Trading this is called Arbitrage.

So you see, there are many concepts that work in Trading or Shopping  that women do and do well.  In Trading, there is money for everyone.

The other thing that should help understand  this whole Trading exercise is that, it is like shopping for  Shoes.  Yes, Shoes!

1.       We should know what we are after .  “Oh I really need  strappy sandals  for a wedding”.
Same as in Trading, start by having  an Objective.  Say you want  to “consistently achieve 3% of capital per month (total of 36% per year!) . If you don’t know  what you want, where you want to go, YOU CAN’T GET IT RIGHT!

2.       We buy what is a good fit.  Usually,  you wouldn’t buy  a shoe of a smaller size.  Like so in Trading, if a trade does not  feel  right for you but you went ahead being influenced by someone else, this tends to be a loser.   So  Trade only what fits you, your timeframe, trade only the stock/industry you know.

3.       We buy a lot!  Formal shoes, running shoes, many styles of sandals, boots,  according to color, material etc.     You have to have a range of shoe options.  Point is you have got to budget for all this kinds of “shoe  situations”.    You shouldn’t  spend too much on one shoe.   So this important  lesson in Trading is that you have to keep how much you risk  at an amount that does  not blow out your budget and be able to fund next opportunities.

4.       We buy  and wear shoes according to the conditions.   In winter  we would usually wear closed shoes so we don’t get cold, in the summer,  sandals are popular, to keep cool.  So in Trading, you have to have an idea of what the market is doing.  Are people optimistic and buying things in the hope of rising prices (Bull Market), or are people scared and dumping their assets before the prices go down more (Bear Market)?   Or are people not sure where things are going and there is a tug of war between the people who are optimistic against those who are not (Sideways market).    You need to determine Market condition before  deciding on action or strategy, or choose not to trade when market is too choppy.

5.       We buy it when we look and feel good. Easy when deciding for shoes but was  a surprise for me it also applies to  Trading.   No matter how much the trade looks positive from your analysis,  but when you don’t feel good about it (or afraid) that it won’t turn out right, worrying  could make you cut short  a profitable run, this is the worst you can do in profit-taking!    So before opening a trade, you need to feel good about it.  If not, don’t trade it.

I can probably go on and on and on, but the other important thing is,  as there is always another shoe…. as in trading, there is always another opportunity. Be patient and you  will find.

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