Tuesday, April 8, 2008

What I learnt trading the markets and losing money as a result

I don't consider myself as an amateur trader yet my trading is so amateurish in style. The outcome for such a style is predictable and not surprisingly, I am still in a net negative position.

I have read books about trading, technical analysis, interviews with traders and so on but yet to no avail. The greatest enemy is not anything external but actually myself and my mental state.

Cardinal sins that I have observed about myself are trading like a gambler (over trading), no discipline, no focus, no methodology and being too emotional. No wonder, I keep feeding the markets or providing more commission to the brokers. 

As I am writing this, I am taking a break from trading and hope to resuscitate it soon. First and foremost, I must treat trading seriously, be more disciplined, focussed and really have a firm methodology to trading. If not, it is best I stay neutral in the markets and remain an emotionless forecaster.