The reason why I’m starting this journal is to record all the market analysis made, to turn trading professional and treat it seriously like a business. Aim is to achieve consistency and profitability in the long run. The only way to do that is by making rationale decisions not swayed by emotions. And the way to control that is to record all the thought process made before any trade is opened as that is the time when one is most rationale. Decisions made when staring at an opened trade is never rationale, never helped by the price ticking up and down every second.
4 years ago I started trading shares and lost some money. About 6 months ago I started trading forex and indices and lost some more money.
A good percentage of profitable traders today have lost money before. It is a necessary process according to one of them. Quote: “Every professional trader has their own “I-blew-up-my account” type of experience, in fact it is a necessary experience in order to progress further, as it teaches the one key skill which many starting traders overlook: Risk Management”
It has indeed thought me about risk management. Something I did incorporate into my strategy in the past but never really took seriously, resulting in the terrible loss due to a mismanaged trade.
The loss shall be considered as ‘expensive tuition fees’ that everyone has to pay. Hope the lesson learnt from it will reap rewards in the future.
Back to part time jobs to build up on capital. Once that has been achieved, this plan will commence.