April 04, 2006

March Review

I started trading full time at the end of January. For the month of January, I made nothing. In February I made very little but I was glad to achieve my first goal of no down month. Even though I was Confident and Optimistic, I still questioned whether I could make a living as a trader.
I did well in March. I finally made more than my previous month salary at the job I gave up to trade. It also made me realize that I can do this for a living. One month performance can't predict a career, but after trading for a little over two months, I think I am getting a feeling about the markets and about myself in the markets.
One thing I suggest to new traders is to have enough money to keep the pressure off of you for at least a few months. I continue to do consulting work for a previous employer and this has helped me to concentrate on not losing money instead of making money. This reduces the stress and helps me to make money.
Another thing to keep a watch on is your ego. In trading, ego can be directly tied to your account balance. If you do well, you feel great about yourself and if you do poorly, you feel like crap. Another trader offered me some advice before I started full-time:

You are never as good or as bad as you think you are.

Tournament chess is great training for this - it can be an ego roller-coaster also. The sooner one learns to deal with this, the better - it makes life a lot easier. But it is a constant struggle.
Although some people probably thought it was a very poor decision, giving up my job to trade full-time was the best career decision I have ever made. I have never even been close to as happy as I am as a day trader in any other job. Even if I eventually lose everything and fail as a trader, I could not regret this decision. If you love the stock market and you know you can do it - I strongly suggest you give it a try.

Comments

Congrats. Good to see you're doing well and enjoying it!

Posted by: TraderEyal at April 5, 2006 01:12 AM

Ugly,

Congrats and thanks for your insightful words.

Tom

Posted by: Tom at April 5, 2006 06:17 AM

After making a lot of money from a few position trades in 2003-04, I went to work for an auto wholesaler. Some days I'm at the PC watching the tape. Most days I'm away from the PC goofing off with this old barracuda in a bathtub. Still, I check in regularly for some numbers, just to determine, for myself, what the trend, if there is one, is up to.

Welcome to the Great Game.

Posted by: Monksdream at April 5, 2006 06:52 AM

I strongly agree with your comment regarding being properly capitalized prior to day trading full-time. When you're worrying about the rent or the house payment you cannot concentrate on trading.

Posted by: Todd at April 5, 2006 08:14 AM

May I ask Ugly, what kind of figure for the capital did you had to trade full time and what is the optimum returns one should expect in order to trade full time...

Just wondering.

Posted by: Francis at April 5, 2006 09:07 AM

Congrats. There is no reward without risk.

Posted by: Pradeep bonde at April 5, 2006 10:05 AM

Thanks dawgs.
Francis - I traded with a prop firm which gave me more leverage than I would get otherwise. This allowed me to start with less capital.

Posted by: Ugly at April 5, 2006 09:51 PM

All the best to you and thanks for the site...can you maintain this site for another 50 years? lol...

Posted by: Francis at April 6, 2006 02:57 AM

Good job. Keep it up.

Posted by: John at April 8, 2006 06:53 PM


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