May 29th, 2018 | 5 minute read (Repost from We The Market)
It is time to put it all together. I have learned a tremendous amount in the last 9 months. Will I stop learning? Of course NOT. In this arena you will always be learning because the market is always changing. Also, traders are changing. Stay in sync with yourself.
This time around in the simulator I am doing my best to keep it real. In the past I would fantasy trade with large shares and many stocks. Recently I have been trading more tickers which I am going to reduce. Ideally, 3-4 trades with proper sizing. The emphasis in the simulator is keep it real. I have talked with so many other traders and they all say the same thing. I am successful in the simulator but when I transition I lose money. I believe this has to do with not treating the simulator as reality. Keep it real in the SIM then when you transition you will crush it.
I was talking with another stock trader, Peiter, and he was not so sure about me working on my psychology. Peiter is a swing trader and has been trading for the last 10 years. He is a chart master and is very confident in his indicators that he has built. With his indicators he will go into a position without hesitation. He claims there is no psychology in his trading. I don’t doubt that for him. Where psychology is a factor for me was in minimizing loss and taking profits while a beginner. I would get shell shocked when the price would drop and then hope it would turn around. Now, I just exit quickly. As far as taking profits, as a new trader I always thought the ticker was going to the moon. Now I take profits without Fear Of Missing Out (FOMO). There are plenty of times where I exit and the price continues in a profitable direction. I don’t care! I have my money for the day. I do care about getting better but I am not crying over missed potential.
This is a marathon and not a sprint. I will remain in the simulator until I can prove consistent profits. Again, I don’t care if I am missing out making all that money.
I will be a profitable trader in days to come. I will look back on my growing pains and laugh. I encourage new traders to keep going, keep studying, watch your money to stay in the game long enough to turn the corner.