In today’s article, I want to identify the challenges of a new trading business and the typical conversation that we have with ourselves as we begin our new career in trading. Then, in tomorrow’s article, we can look back at this conversation and identify the common issues that traders have as they begin their “new” trading business.
How lucky am I? After years in the corporate world, I finally get to work from home. I am my own boss.
No more getting up at 5am, showering, putting on make-up, wearing those killer heels, or running the kids to daycare. No, I’m lucky. I get to roll out of bed, grab my coffee and go to my desk (at home). How awesome is this? I have the life everyone else dreams of.
Or do I?
Challenges of a New Trading Business
Day 1 Challenges of a New Trading Business: Yes! I am so excited. I roll out of bed, grab some coffee and head to my desk. I wait two hours for my trade and finally it comes in. Then, right in the middle of the trade, my son walks in because he wants to chit chat. Of course, I tell him now is not a good time. But he keeps on babbling. I can’t focus with his constant babbling of some movie that he watched last night. Again, I ask him to talk to me later. He asks what is the problem, can’t I listen and watch those little things on the screen at the same time? “I mean really, mom, how much focus does that take?” Of course, I yell at him to leave me alone because “I’m working”. He laughs but leaves. By this time, I realize that the higher timeframe made a magenta peak and I should have taken profits and now I’m in the red, both in the matrix and in my head.
Day 2 Challenges of a New Trading Business: Okay, I didn’t perform quite as well as I should have on Day 1. I actually ended up losing about a grand. It’s okay, today’s a new day and I’m still glad I made the change to be my own boss and work from home. I get up, grab my coffee, and head to the desk. Within 1/2 hour my trade sets up and I take it. I make up the grand I lost yesterday and more. Now, this is the way it needs to be. I continue to trade. Banking profits all the way up that trend. How sweet is this!!
Day 3 Challenges of a New Trading Business: I love working from home! Best job I have ever had. I roll out of bed, grab my coffee and head to my desk. I look at the market reports and there are several major market reports at 10am then FOMC announcement at 12:30 and FOMC statement at 2:30pm. Maybe I should take the day off.
I go do the dishes, throw some laundry in, and make the beds. Well, I could just check to see what the markets are doing. WOW! The market moved up 10 points after that announcement at 10am. Why did I take the day off? I am going to try and catch the retracement — after all, I don’t have anything else to do. I enter and the market dies. Ten ticks up, ten ticks down. After about an hour of this, I finally exit my trade with a mere hundred dollar loss. Well, I did know better but I was bored.
I go fold the clothes and put them away. I go outside and piddle around the garden. Go back inside and watch some television. Then I cook dinner, wash the dishes, and I’m done. Well, I could make up that hundred dollars because the Asian session opens in fifteen minutes. Back to my desk I go.
Man, this market is moving slow but that’s okay. I can still probably make at least that hundred back I lost this morning. I’m not seeing my trade setup and I wait. Finally, at 10pm I see the trade. I go long, knowing this is it. I can make that hundred back and more. I look at my matrix and I’m already down 4 ticks — what happened? Why is my entry 4 ticks off? Do I add 4 ticks to my stop and profit targets? Wait, on exit should I anticipate another 4 ticks off the price where I want to exit? Why am I even trading now? I’m tired and I want to go to bed. Why did I enter this trade? Finally, after another two hours, I manage to take a hundred bucks out of this market. I am exhausted and didn’t make a penny today. Well, at least I didn’t lose any.
Day 4 Challenges of a New Trading Business: I didn’t get to bed until after midnight last night. I got stuck in that trade and it took me forever to get out. I slowly roll out of bed, grab some coffee and open my charts. I wait. Just a few minutes before 10am, my trade comes in. I go short. I trying to determine where I need to place my stop and BAM, a huge bar goes against me. I’m down two grand. Should I exit? No it was a huge bar so it will come back some and I won’t lose all that money. Another five hundred against me but it should come back. Another five hundred. Finally, I exit — losing three grand. What happened? I go check CNBC and realize the Existing Home Sales were much lower than anticipated. What was I doing in the markets? I know better. I forgot to check those stupid reports. This is just great. I have worked my butt off all week and I haven’t made a penny. Am I stupid? How could I forget to check for market reports? Oh, yea, now the wide bar is going to retrace. A lot of good that does me. I already lost my profits for the week. Should I go back in? I see the short setup but the last one took all my profits. No, I’m going to bypass this one. I don’t like it. Just doesn’t feel right and I don’t want to lose more money. I watch as it continues down. If only I had taken that setup I could have made some of the money back. It continues down. Finally, there is a magenta peak. Okay, I will enter on the next one. Price retraces to the ATR and I go short. But, this time, instead of continuing down it goes against me again. Down another five hundred. I’m toast. How am I going to tell my darling husband that I not only did I not make money but I lost about six hundred this week. He is going to be pissed. Well, I just won’t tell him. He wouldn’t understand anyway. Wished I had someone to talk to that understood this mess.
Day 5 Challenges of a New Trading Business: Again, I roll out of bed, grab a cup of coffee and head to the computer. I don’t know what I’m going to tell my darling husband. I can’t lie very well and I know he is going to ask me about how my week went. Well, maybe I can just avoid the discussion or change the topic. If he finds out I lost money this week, I know we are going to argue and, after the week I had, I don’t need that. I really don’t feel like trading today. Well, it is Friday so I’ll just take the day off. I can’t focus anyway. It sure would be nice to talk to someone that understands. I know he is going to go off on me. I can already hear his words. Why did I lose that money? Don’t I know what I’m doing? If I can’t make money at this then I need to get a “real job”. We have to pay the mortgage, the car payments, the utilities and I’m doing all our money. Maybe this wasn’t such a good idea……………………
The Challenges of a New Trading Business will continue in tomorrow’s post.