Dear friends - This is the 3rd time I'm returning back to trading (though all earlier stints have been quite short). But, this time around, focus is not going to be on learning various trading strategies and tools available but instead focus would be more towards controlling myself and to bring in some discipline and try to make it more organized. So, to start with, I'm planning to pen down my detailed trading plan. Have picked up trading plan template from web and well keep on updating it section by section. To start with, I have captured below info in my trading plan and will keep on adding further details to it. Looking forward for your suggestions/inputs to better my trading plan.
1. I want to become a trader because o Reason # 1: I’m struggling with my current job pressure and keep thinking about any other option which can help me generate regular income. As and when job pressure keeps increasing, I keep on returning back to trading as a solace. It gives me a comfort feeling that yes, I can earn good even if I have to let go of this job
o Why Trading and no other profession like business etc. to run away from job: Because trading can be done in isolation and one need not interact with others. I have a feeling that I’m not a good social person or orator and am not good at handling/interacting with people and that’s why trading keeps giving me that comfort feeling
2. What separates me from the masses are: o Can’t think of anything positive here….sorry (there is one)….biggest positive for me till now has been GOD’s support. Parents would hv really done something good for which I’m reaping the benefits as GOD has always been able to pull me out unscathed from really difficult situations and have been able to pull me till now. But, yes, journey has been really traumatic.
3. My biggest weaknesses are o I can cover pages on this
Unorganized : Never prepare and follow any plan which is the main cause of me always being under stress
Non-disciplined: have got no discipline at all. Could not stick to any commitment/follow a plan
Procrastinate: keep on delaying tasks..especially the ones which are difficult (but obviously more important). This keeps on adding pressure and I keep spending time in completing the easy ones which are relatively lesser important. This gives me some kind of false comfort that I’m occupied and busy doing something and hence could not find time to finish off the important and difficult tasks. Basically, very poor time management
Can’t sit peacefully and happy – I have got the tendency to create a difficult situation out of nowhere. Would either create an issue or speak up where not required and this has led to many a times difficult scenarios for me. What I feel is that I can’t sit in a comfortable position
Am not learning from any of my past mistakes and keep repeating them forever
4. I plan to leverage my strengths by: o Would love to have this area also filled up but right now have to keep it blank (being honest here). Wait for couple of more years to put in something here
5. I plan to address my weaknesses by: Unorganized : This is going to be really going against me as far as Trading is concerned (for that matter in all the areas of life). But still, as of now, I think, best way to handle this would be to strictly maintain a) Trading Log to capture all trades b) organize all my reading material so that I can refer back to it at a later stage (as of now read it once but no mechanism to go back to it) c) some mechanism to capture all details like reason for entry, vol., stop loss etc. Best thing would be to keep writing everything.
Non-disciplined: again this is going to hit badly in trading and can be a differentiator b/w me riding a scooter or driving an SUV. This really has to be addressed and main focus should be to instill discipline to log my trades, keep updating my trading journal, keep referring to my trading plan etc. Let us see how much I can overcome this.
Procrastinate : Don’t think this is going to impact trading in a big way
Can’t sit peacefully and happy – Have to divert my attention to other activities/hobbies like going to park with kids, visiting malls etc. This should be more and mare part of routine life as this will instill a feeling that life can be lived in a relaxed fashion as well
Am not learning from any of my past mistakes and keep repeating them forever : Going to be most critical one in trading. Best I can think to address it would be by ensuring that learning’s from each and every trade are documented and then as a regular practice (probably every weekend or once a month, keep revisiting the mistakes and then paste the repeated ones on my trading desk and ensure not repeating those mistakes in future while entering/exiting any trade)
1. I want to become a trader because o Reason # 1: I’m struggling with my current job pressure and keep thinking about any other option which can help me generate regular income. As and when job pressure keeps increasing, I keep on returning back to trading as a solace. It gives me a comfort feeling that yes, I can earn good even if I have to let go of this job
o Why Trading and no other profession like business etc. to run away from job: Because trading can be done in isolation and one need not interact with others. I have a feeling that I’m not a good social person or orator and am not good at handling/interacting with people and that’s why trading keeps giving me that comfort feeling
2. What separates me from the masses are: o Can’t think of anything positive here….sorry (there is one)….biggest positive for me till now has been GOD’s support. Parents would hv really done something good for which I’m reaping the benefits as GOD has always been able to pull me out unscathed from really difficult situations and have been able to pull me till now. But, yes, journey has been really traumatic.
3. My biggest weaknesses are o I can cover pages on this
Unorganized : Never prepare and follow any plan which is the main cause of me always being under stress
Non-disciplined: have got no discipline at all. Could not stick to any commitment/follow a plan
Procrastinate: keep on delaying tasks..especially the ones which are difficult (but obviously more important). This keeps on adding pressure and I keep spending time in completing the easy ones which are relatively lesser important. This gives me some kind of false comfort that I’m occupied and busy doing something and hence could not find time to finish off the important and difficult tasks. Basically, very poor time management
Can’t sit peacefully and happy – I have got the tendency to create a difficult situation out of nowhere. Would either create an issue or speak up where not required and this has led to many a times difficult scenarios for me. What I feel is that I can’t sit in a comfortable position
Am not learning from any of my past mistakes and keep repeating them forever
4. I plan to leverage my strengths by: o Would love to have this area also filled up but right now have to keep it blank (being honest here). Wait for couple of more years to put in something here
5. I plan to address my weaknesses by: Unorganized : This is going to be really going against me as far as Trading is concerned (for that matter in all the areas of life). But still, as of now, I think, best way to handle this would be to strictly maintain a) Trading Log to capture all trades b) organize all my reading material so that I can refer back to it at a later stage (as of now read it once but no mechanism to go back to it) c) some mechanism to capture all details like reason for entry, vol., stop loss etc. Best thing would be to keep writing everything.
Non-disciplined: again this is going to hit badly in trading and can be a differentiator b/w me riding a scooter or driving an SUV. This really has to be addressed and main focus should be to instill discipline to log my trades, keep updating my trading journal, keep referring to my trading plan etc. Let us see how much I can overcome this.
Procrastinate : Don’t think this is going to impact trading in a big way
Can’t sit peacefully and happy – Have to divert my attention to other activities/hobbies like going to park with kids, visiting malls etc. This should be more and mare part of routine life as this will instill a feeling that life can be lived in a relaxed fashion as well
Am not learning from any of my past mistakes and keep repeating them forever : Going to be most critical one in trading. Best I can think to address it would be by ensuring that learning’s from each and every trade are documented and then as a regular practice (probably every weekend or once a month, keep revisiting the mistakes and then paste the repeated ones on my trading desk and ensure not repeating those mistakes in future while entering/exiting any trade)