>>The type of trade is very relative to this discussion. It is great that you have been able to define standards and what works best for you over the years and been in the game as long as you have. Props.
For me when I started out in the late 90's my biggest hurdle was being under capitalized. You develop what I call the miss the train syndrome. There are so many opportunities revealing themselves on a daily basis but how these land and how long it takes ties up your capital and it becomes a game of ping pong going back and forth and having regret for not doing X instead of Y because X doubled intraday and now you are sitting on Y for a week waiting for something to happen. Very frustrating times.<<
Thank you gamma for your insight. I have three accounts (excluding our kids' accounts) and the easiest one to trade from is my TDAmeritrade IRA 'Limited margin account'. This type of account did not exist in the 90's but is so helpful today. This type of IRA account does NOT give you access to margin but it does permit you to use all your account balance all the time with no wait time. You can enter and exit as much as you want to. I'm pretty sure you need the usual 25k$ balance to operate with. Makes trading today a lot easier.
Hindsight is my biggest negative mental hurdle in trading. Unfortunately there is no way to get around it. Red is a much more powerful color than green. I somewhat get around the dreaded 'red' by trying to focus in general on account balances rather than individual stock ticker gains or losses.
>>This type of scenario with T is something I don't trade. As both of you put it, you will know when you know it. My niche and how I finally broke through to my limitations was in options trading. Specifically trading stocks breaking out in price with calls closest to expiration. As well as M&A timing set ups with options and warrants.
Before this point I would be terrible at position sizing and quite often be 100% all in on trades. So you would only be good as your last trade. Big up months and big down months. By finding what worked best for my particular personality (strategies above) I was able to dramatically scale back my risk capital and consistently be looking at trade setups that would quickly play out and be potential 10 or 15 baggers.<<
Fantastic that you found and learned a way to protect your accounts. My brother in law is a retired mutual fund manager and options has helped him immensely in enabling him to hedge long, ordinary stock positions going into earnings and such.
>>But having said all that; money and trading in the end is really futile and pointless. The silver lining in all of my ups and downs is sure I made allot of money and lost allot of money too, but at least I never lost my own actual coin. And in between took some pretty long cool **** vacations. <<
I tell my kids that having a financial cushion is freedom from being put in a corner from outside forces. It's kind of funny because my sister has a friend that has a 16 Billion $ net worth and when my sister asked her what she wanted for, she replied "freedom". Soooo...having too much or too little will confine you.
I initially started trading because of our financial realities. You can only rely on money that you actually possess. Employees are easily thrown away today and promised salaries and pensions can go poof. My husband of 36 years is 15 years older. We have gone through 2 large employer bankruptcies (just as he got ready to retire) and thus lost 3/4 of promised pensions. I foresaw myself in a very bad situation (as I had married for love only and didn't know anything about age & money) should my husband pass before me. In 99, I learned how to turn on a computer and figured out some of this trading stuff. Been trading daily since then. In 20 years I've had huge wins and big trickle down losses. A lot of my losses happened in the last year and a half... my trading techniques are not working as they had in the past. I pretty much always make profits upon my entry but I'm seeing that I'm waiting too long for a bigger gain and then sometimes get stuck in a position for a long time. New traders....if you want to grow your account by X amount of dollars yearly...take small profits frequently and they will add up over the year. It's harder to achieve home runs than base hits but the base hits will get you home too.
>>I suspect that most of us on here have it too good. There are so many people that have real problems be it lack of food, shelter, health, etc. In 2015 as my blow ups were playing out, I was on a boardwalk. This little boy who had a significant permanent physical ailment/challenge having braces on both legs was sitting with his family about 15 feet away.
He decided to walk over to me to say hello to my four year old. Watching this kid struggle for literally minutes to simply walk over and then the incredible task of sitting down next to us was just too much. I almost cried right there on the spot. It truly gave me real perspective. To think about really what some folks endure on a daily basis. To get up and do it over and over again.
When my dad was a little kid in Europe it was during WWII. The nazis invaded his home town. He had no food and you can not imagine the suffering and famine. People his family knew died. It was the worst of times.
So I tell people no one should ever feel sorry for me or themselves. I have never experienced hard times. Its all about perspective and keeping a clear mind. Trade and live within your means and what works best for you. And be thankful for what you have instead of focusing on what you want and be humble as you can. Cheers.<<
I cannot imagine the daily empathetic torment that little boys parents go through. It has to be their own personal hell on earth but at the same time, their love would not want to give up one single second of being graced with his being.
Different subject.....Moderate hardships in life are a good thing. I tell young parents to not give their children over abundances because while you do that, you receive momentary happiness but steal away that child's future happiness. Having everything consistently dulls your senses for a lifetime. I call it the 'Paris Hilton' affect.
My grandfather was in the Armenian death march and finally dropped and was left for dead. Days later, someone saw him laying on the ground and saw that he was still barely alive. They took him and nursed him back to life. My 15 yr old Armenian grandmother had her own incredible tale. They were welcomed to our great United States with open arms. Their son, my dad, was in the D-Day Normandy invasion. We are a small world and all of our past, present and futures are intricately entwined.
Yes, today most of us are living a fortunate life. I am a minimalist and naturally have very few desires. I find material goods burdensome as I do not want to take the time away from living life in exchange for taking care of 'things'. I fortunately do not have great wealth but hopefully enough to help others while I maintain my freedom.
Hope you have a great Father's Day as I can see that you truly have been blessed with a good heart.
Re: 100% agree with this in general trading almost any stock and why I make m...
Dumb luck streak going on sixteen years. Follow at your own risk ;O)
" People are often unreasonable, irrational, and self-centered. Forgive them anyway.
If you are kind, people may accuse you of selfish, ulterior motives. Be kind anyway.
If you are successful, you will win some unfaithful friends and some genuine enemies. Succeed anyway.
If you are honest and sincere people may deceive you. Be honest and sincere anyway.
What you spend years creating, others could destroy overnight. Create anyway.
If you find serenity and happiness, some may be jealous. Be happy anyway.
The good you do today, will often be forgotten. Do good anyway.
Give the best you have, and it will never be enough. Give your best anyway.
In the final analysis, it is between you and God. It was never between you and them anyway."
-this version is credited to Mother Teresa