Growing Realizations

I was given a task.

A task to find my own system. The task, though I've taken lightly at first, proved to be full of realizations on this path that I've chosen to walked on. Indeed experience is the best teacher.

Knowing is different than doing.

Before the task, I already know that AOTS and PUA are great and powerful tools of a trend follower. I've read them numerous times on their blogs. I've heard them loads from their videos. I know that the setup works. Because I've heard. But knowing is different from actually doing it. In my task, I charted loads of setups with AOTS and PUA. I've seen them work their magic. I've used them a hundred times and more. I've experienced them. And experiencing them has a big difference than just reading them from blogs and videos. Now I know that they really work. I can back it up with a study and not just words.

Trading is more personal than you know.

Before, I thought trading is just like another economics subject in college where everyone can learn through reading and practical experience. Yes we can. We can learn it by reading, watching videos and practicing it. That's one way. But if I really want to excel in this game, I have to make it personal. I have to bring it down to a personal level where my trading plan and system should fit myself and my lifestyle. Not my mentor's lifestyle. Not my trader friend's lifestyle. This is about me - my whys, my goals, my time, my risk, my returns and my routine. This is about my rules - my timeframe, my trader profile, my indicators, my risk, my entries and my exits. Have my own personalized trading plan and system and update it as I learn from the market.

Stick with your trading plan.

A trading plan is only effective if it's followed. It requires sticking to it through wins and losses. That takes discipline. Back testing it is easy as I already know what's gonna happen with the historical data. But forward testing or virtual trading the system requires discipline as I was tempted to give in to my emotions and deviate from my plan. I experienced this when I tried using the system in a trading game where I can't see the following candles unless I hit the 'next' button. I was always tempted to maximize the gains by entering too early and exiting too late. Ignoring the rules that I enforce myself.

Stay disciplined. That sounds easy to understand and simple to do, but most traders still fail to do it. Why you ask? Because most traders don't have a trading plan and for some that have, most of them are just following someone's plan. A trading plan should be a personalized plan for you and your needs. It enables you to control the only thing you can control... yourself.

Patience is key.

Trading plans are intended to be long-term. I shouldn't give up on my plan or on my system in my plan just because I experienced strings of losses. Stick to it. Endure the losses. Say no to instant gratification. Trading is not a sprint they say. Trading is a marathon. Some may run faster than me. It may take me longer to get to the finish line but still I'll make it. I just have to be patient.

Be realistic.

Traders shouldn't base their trading plan or system on someone else's plan. If you do this, you will not be compatible with it and will have trouble following it. Plans should also be made based on realistic goals and not on hope or false assumptions. Hope is an enemy in trading. Aiming for DYM in 3 months when you're a newbie is not likely achievable. Be honest with your plan and system. If you find that you're having trouble following a rule or achieving your goal with it then don't be afraid to revise your plan. Be honest with yourself.

Who you are.

You must accept who you are. If you are basing your system on someone else's then you are not accepting who you really are. Self-denial can sabotage you. You must first accept your flaws and address it. You can't think of a solution for a problem that you don't know. You must be self-aware of your issues first. Look in the mirror. Reflect on yourself.

A trader of your own.

You can be profitable without the noise, the gurus and the recos. Though I haven't used the system yet in real life trading, back testing it and using it in a trading game proved that the system works and can be profitable. You can be your own trader and not just a follower.

Conviction.

Building your own plan and system also builds your confidence as a trader. Following someone else's recos does the opposite - it wrecks your confidence. It gives you fear and confusion. They may tell you where to buy, but they won't tell you where to sell. A system or plan on the other hand, gives you confidence. It tells yourself where to buy and sell.

It pushes you out of your comfort zone.

Before, I let losses go beyond my cut loss level - if I have one, and also cut profits to early or let my gains get wiped out of hope that the price will still go higher - because it was the comfortable thing to do. My trading plan and system are here now to prevent this things from happening.

It is a work in progress.

The market is not always a bear market or a bull market. It is not stagnant to one season. The market is dynamic and ever changing. As the market changes, your trading plan must adapt and change with it. Adapt and survive.


This might be my first trading system. But this will definitely be not my last. I'll find my strengths and I'll build systems around it in the future for different market situations. Bear or bull. Soon my trading plan should incorporate different and flexible systems that can survive with the ever changing market.

I took a knee. And reflected.

I was given a task.

A task to find my own system. The task, though I've taken lightly at first, proved to be full of realizations on this path that I've chosen to walked on.

A task that led me to know myself better and be my own trader.