Since writing in December, I have now started live trading in February.
Back in late 2016 I wrote a business plan and started executing it from January 1st 2017. The first phase is a 4 month plan covering strategies and everything to do with treating trading like a business (which it is).
I can now give you some updates as to where I am as of the middle of February:
January was all about paper trading
I started paper trading with a clear strategy – buying bullflag patterns on low float volatile stocks. It worked very well for the first week, however I then started averaging down in weeks 2 and 3 and basically did a lot of experimenting. For example, holding losing positions rather than closing them out (to simulate how it feels to hold a large loser) etc. I tried a lot of various tactics to see how I would cope when it was real money on the line.
The last week of paper trading was also a bit up and down as I was getting too aggressive with my size and chasing stocks.
February- first month of trading with real $
Well, profits started off well and then went downhill. Why? For the simple fact that I’m still learning to trade with real money and that I’m still not experienced enough with seeing all the patterns. I also have a bad case of FOMO (fear of missing out) and I chase a lot of running stocks. This is a bad idea and is too gung-ho to be effective.
I captured and analysed all my paper trades and are doing the same thing here. I use Tradervue.com which is excellent at analysing where my strengths and weaknesses lie. From the small sample size (only 3 weeks) it’s apparent where my weaknesses lie: chasing and FOMO.
I’m also in regular contact with my trading coach (15 years+ experience) who is currently helping me get over this hurdle. I highly recommend my coach and if you are looking for a trading coach please drop me a line and I can provide you with an introduction.
As of last week, I’ve decided to go back to paper trading and try some small changes such as:
- using the 1min candles a lot more (at the moment I pretty much just focus on 5min)
- setting a wider stop (10c at least- at the moment I’m quite strict with very tight stops that would turn into some good trades)
- decreasing size
- using L2 more and learning how I can make use of this more
I will start these changes from Monday and will track all of them and how they impact my bottom line.
It promises to be an exciting next couple of weeks and I’ll post an update in March. Also if you would like to follow my trades, please see my profit.ly account where I show all my trades. At the moment this is slightly out of date but I will post all my recent trades by the end of February.