As 2006 winds down, it’s time to assess my online stock trading for 2006. The stock market is always changing, as is my arsenal of dealing with those changes. So what things have helped me become a better trader this year, and what items do I need to work on for the next year?
Writing and assessing my online trades: To help me become a better trader, I began this weblog in 2006. I believe it has helped define a few trading patterns that I can use over and over again. It really helps going over your trades to determine where your mistakes are, and point out your strengths and weaknesses. I set up the trading patterns category, and trackback to my first example of the main day trading patterns I use (eight, so far). The cool thing is that now I can go to that original stock trade, and refer to all the other trades that use that pattern too. This will show me if I’m better at trading certain patterns than others, or if I tend to enter or exit trades early or too late. The Bear Short 2 signal for example, has eight references to other trades I made using the same pattern. For 2007, I will set up a trading patterns page that shows all the patterns in a cleaner format, and on one page. Then I can link to each of the pattern examples I’ve already created.
Discipline: Being my own boss, making my own rules, and FOLLOWING THOSE RULES is sometimes not easy. This weblog has helped me focus on following those online stock trading rules I’ve made for myself. I’ll admit I can get lazy, but knowing that I need to write a post gets me to look at my trades which I enjoy doing when I get going.
Confidence in myself: For years, I tried to find different trading techniques that worked, and after ten years of sitting here in front of my trading platform, I’ve learned to get a gut feel for certain movements in the market. I’ve found what works for me, and will use my own ideas to trade online in 2007. That doesn’t mean I don’t like seeing different ideas, but that I have to know inside why I’m trading. I guess it’s trusting the psychological aspects that I know I possess.
Passion: Last week, I listened to an online radio show from a successful online entrepreneur, Shoemoney. During the show, the host and guests were offering tips on the subject of affiliate marketing. At the end, the host Jeremy Shoemaker was asked what he would have done different looking back five years. The main point I got out of it was to be action oriented. You could hear the passion Jeremy has for the business he’s in. He’s successful because he just gets in and does it. Like the Nike tagline of the late 80’s, “Just Do It.” I have a passion for trading stocks online. I see myself as a more action oriented trader in 2007. When I get ideas, go with my gut. Trading is technical, but it is also an art. Relying on my instinct will serve me well. It will never be 100% correct, but just doing it, and going with it is the key. Something will evolve out of it. It may not be exactly as first intended, but lessons can be learned from it. Incorporating this into my online stock trading next year will produce tremendous results I’m sure.