Sunday, July 27, 2008

Neither hungry nor foolish

As often as i used to write, trading is not only about technical analysis. Inorder to generate wealth, you need to have money management, otherwise it will be win here lose there, nothing fantastic. The other more important factor is psychology. That was my edge in the market place. Everyone can learn technical analysis and money management easily but when it comes to managing psychology, everyone will know but not practise it. This is human nature and this is why stock market is the way it is. Someone has to lose the money and the next person picks it up. Ask anyone who has been to my seminar, i have no qualms about sharing the signals and when to buy and such with no holds bar kind of presentation. But when i talk about managing of psychology, often times the interest was not there. At times i was so frustrated. I knew it is what made me trade successfully and yet i couldn't convince them to pay attention to it.

Ever since i came back from my 2 months break late last year for marital bliss, i notice my fire has died. The hunger was no longer there, and the passion if any left, was spent on coaching my peers. The story began about 4 years ago, one night, i decided enough is enough and masterminded my comeback plan in trading. Everynight i would study the market in earnest no matter how busy or how late it was. People came to know about me and my blog and visitors started pouring in. I knew i had a large following and i am honoured that i could help many people who like me, lost and wants to make back all the money and thus i made it a point to share information here on this blog. I had 3 short-term goals then. I needed money for my wedding and my love nest. I want to get out of my IT job and work in a investment related profession. And i want to make back the money lost! With these 3 burning missions on my mind, everything else became secondary. Focus + desire is what drives me back in those days. Two targets were reached by 2006, i made back the money lost all these years and now has sufficient money for my wedding and love nest. By 2007 July, i quited my job and joined ChartNexus. Dec'07, i came back from my honeymoon and began my new life.

Yes, new life... alot of things about me changed. I couldn't got back my passion for trading, my desire and focus was no longer there. Charting became a chore to me and teaching T.A bores me. What is happening to me! I slipped into a depression that i told no one about. I began to wake up in the wee hours and unable to fall asleep. Work suffers as my creative juice dries up, i stopped exercising and couldn't find interest in anything not even trading. Day and night just passed. After a month, i managed to find out the reason...... i was so focussed on my 3 goals all these years that, after i achieved them, suddenly i had nothing to look forward to.

Listening to Steve job's speech about staying foolish and hungry, i realise i had indeed slipped into a complacent mood. After achieving the 3 goals, i should be setting my sights on greater things to come. But instead, i felt lost and didn't know what's next. Some would ask, "wouldn't you want to make millions?" Of course i want! But i know it is not by saying, it will happen. I need to be thinking abt the little steps to getting there and making sure each step is executed to perfection. Thinking abt the million is what i call focussing on the wrong stuff. Yes it is a goal, it is a motivation. But the focus should be on the small steps. My 3 goals were achieved because i shut my ears and mind to pessimism and focus on the small steps. Incase you wonder what those small steps were? It is the daily charting and blogging. I scrutinise each trade and learn more things when i win or lose and then record down on this website so that i remember. Even when i put on a trade, i do not fret abt the profits or losses each day. My focus is whether the market is going to where my money is. Especially in trading, if you keep thinking about how much u gonna make in this trade or lose in a certain position, your emotions will be affected and that is how silly trades are done.

Goals and desire are such powerful mind games, we ought to make better use.

This shall be my key reversal day. I can feel that i am ready to set new goals and achieved them. I want to be the old decipher, ever so passion abt trading. If destiny wants me to fall, then so be it. I rather fail spectacularly than lead a mediocre life. huat arh!

DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings.