Today I would like to announce my intentions of becoming a professional penny stock trader. I have for years dabbled in the market with some mixed success, while I am profitable over the years, I have not nearly achieved the level of success that I expect out of myself.
I’m fairly certain this is because I have never decided to fully become a professional and treat it as a career and a business. One of the biggest drawbacks of the markets is their ease of access and almost zero implications from failure. Sure it sucks to see your account go down, but you can just move on and do other things. I’ve found that some of my worst trading comes when I become the most comfortable. Just recently I went on an almost 90% win streak, very nearly every trade was profitable (though small). I thought I was taking a smart approach going small and building up, but this success prompted me to get cocky and take bigger positions in losing plays. My failure came 100% from not following my rules. I have what I think are a very solid set of rules, but they are worthless if not followed diligently and without compromise.
Ironically I had this breakdown in discipline at nearly the exact moment I started this program. But the most positive aspect, was I said “Fuck it” you are done and shut myself down to protect the profits I had built up this year. Sure in this rough streak I gave back most of February and March’s profits, but I am still net positive for the year.
Why do I tell you this dear reader? Because due to this lack of discipline I have spent much deep retrospection while staring out my office window and I have had what alcoholics refer to as a “moment of clarity.” It has finally dawned on me what has kept me wallowed in mediocrity when it comes to trading, a lack of discipline. While in many facets of my life I attempt to and often achieve very high discipline, my focus when it comes to stocks has been shit.
And foremost in that lack of discipline is following rule number one for every trader “Cut losses quickly.” Now here is where I attempt to prop myself up a little, I also am confident one of the biggest reasons I lacked discipline was because I have had no goals or no finish line when it comes to trading. I went into every day, week, month and year saying, “Eh, lets make some money trading.” That nonchalant attitude has burned me for the last time.
Almost every goal and achievement book you will read (and trust me I’ve read a ton of them) will tell you that a goal is useless without some sort of defined target. “I want to lose some weight”, “I want to get out of debt”, and “I want to make more money” are probably the most common. But much like my goal of “Make some money trading.” all of these are fucking worthless because they are so ambiguous and open ended.
So after much thought, again staring at the cold snow out my window I had an epiphany, why not enter Tim Sykes Millionaire Challenge. Tim has long been a teacher and mentor as well as a friend. For some odd reason I never thought to use “Making a million dollars trading” my goal. Perhaps it was too ambitious, perhaps it wasn’t ambitious enough? But as of today I feel a cloud clearing around my mind, I have a direction and a goal, and I now have a taskmaster enforcing my trading rules. The “Millionaire Challenge” is now my supervisor and boss, when I break my rules I move further away from my goal of $1M in profits. When I trade disciplined I move closer.
I have also struggled with consistency in all things revolving around trading, I sometimes blog watch lists, I sometimes post video recaps, I sometimes review my trade log, I sometimes blog about trading rules and my experience and knowledge. I’ve also decided that part of this change in direction is a renewed focus on documenting it all. I will post here daily, and review here often. While I hope there will be educational posts frequently, I plan on using this blog as my “Journey to a million diary.”
While I am a huge believe in what Tim Sykes teaches, and I do read every watch list of his and I’m in the process of reviewing every video lesson he has recorded. I also need to point of some of the other great tools and assets I will be using along the way. Nathan Michaud’s Investor’s Underground is without a doubt the best real time stock trading chat room. I use this forum extensively during the day to spot breakouts and breakdowns. While I prefer to short after the hype has faded, one of the best ways to spot the plays early is in the IU chat.
Between Sykes and Michaud you can spend a couple thousand dollars on educational DVD’s and chat room subscriptions, and in this you will gain a lifetime of earning potential.
Click those affiliate links if you wish, or don’t click them, I fervently believe in what both of them represent and teach. I appreciate the journey that that their teaching has now set me upon.
Part of going public with this announcement has a ton to do with accountability. I think one of the biggest reason some of the best traders online are where they are is due to them going public on Profit.ly and Twitter and showing up everyday with a watch list and a recap of results.
I plan on using all these tools as well to publicly document my results. Part of this will be real time trade alerts, I’ve found its easy to stick with losers when you only have yourself watching, I hope that by using a public forum I will be able to induce more discipline into my trading.
Come along as I detail the ride to ONE MILLION DOLLARS!