Be My Own Trader

The following entries are the content and results of the task that was given to me a few weeks ago.



Don’t follow someone else’s advice or recommendations blindly. Don’t be a blind follower. Just because a certain system is working for someone else, it doesn’t mean that it will work for you. Every trader is different. We have different lifestyles. Different time commitment. Different day jobs. Different risk tolerance. Different trading experience. It is better to have a personalized trading plan and system that is unique and match your own lifestyle because, hey, you’re the one who’ll be using it.

When followed with rock solid disciplined, a trading plan can minimize (not eliminate) thinking during market hours by having all sort of plans from Plan A-Z. It helps limit trading mistakes and minimize your losses. It should spell out every action needed, so that you don’t have to make any rash decisions in the heat of the moment during trading hours.

You just have to stick to it.

Build your own. Let go of other's.

Trading Plan

The first step in building a trading plan is to realistically take a holistic view of yourself. The foundation of your trading plan starts with your self-reflection because you will be the only one using it.

The WHYs 

What is your motivation to be a trader?

My vision is to retire at 40 (or earlier, the better). I want to be financially sound so that I can quit the corporate/overseas worker world and be home and focus on what matters – my family – my wife and my kid. I plan to be a full time trader to be able to achieve time and financial freedom. I also want to break the My-kids-are-my-retirement-plan culture starting with my own family. What I want is for me to be able to support our own family and our parents now but as the same time be financially stable enough to not burden my children to support us when we retire. So that my children can also learn to be financially free so that they can focus on building their life and take the steps that they'd like to take without them worrying about supporting us.

The Goals 

What have you determined to be your goals for trading?

My goals are there to help me develop as a trader. I should set them to be specific and measurable so that I’ll be able to monitor my progress and see whether I am improving or not.

Process Oriented

• Consistency and Mastery - to grow as a consistent profitable trader by improving my hit rate for this specific system first; starting by meeting a 25-30% hit rate on Trend Following by end of 2019; and

• Diversification - to learn other plays one at a time (Breakout, Bounce, Bottom Fishing, etc.) to see where my strengths and weaknesses are.

Result Oriented

• To DYM in 12 months (Short Term)

• To be able to make a 7 digit portfolio resulting from gains and not by adding buying power.(Long Term)

The Time 

How much time can you dedicate for trading?

I am an overseas worker. I am 4 hours delayed from PH time. How much time I can spend on trading can be like this – I wake up at 5AM and monitor the morning session if I need to. I then do the commute to my workplace during the market recess. At work, I can partially monitor the afternoon session as my job relies heavily on working in front of my computer. After work, when all other duties and chores are done and before I sleep, I can do other trading stuffs like charting, journal and reviewing, which can help me plan my next day/week so that I am not spending time during market hours scrambling what to do if the market goes against my bias.

The Risk Capital 

How much money can you afford to lose?

I have accumulated enough money to put in as my risk capital to start my trading journey. I’ve already lost a considerable amount of it due to not having a trading plan and system. I am formulating this plan and system to minimize the risk of my trading and improve my consistency and mastery.
The Return 

What kind of returns do I expect to make?

Now, with the time that I can dedicate for monitoring the market sessions, it only dictates for me to be a TREND FOLLOWER. And for Trend Followers, returns are less against those who do swing and momentum plays. But so are the risks. With these facts given, I am aiming to double my money in a span of one year.

The Routine 

What preparations will you do BEFORE every trading sessions?

For preparations for the trading week, stock screening, planning and charting will be done over the weekend to make a watch list for the coming week’s play. For daily sessions, my preparations will usually happen normally the night before the trading session. I’ll do light charting for the stocks that are on my watch list and will review my last trades and journal them. I can also review the day’s market session. See if there are notable stocks to add or replace on my watch list. Review open positions and make adjustments if necessary. Sometimes I can squeezed some of these trading stuff during working hours when work is slow and office is at downtime.



Next Entry: The Rules of The Game