Trader Gav posted an interesting set of questions to help you with your end of the year review. I thought I would answer these questions (being as frank as possible ) as I think they will help me improve my trading. Below is the first 4 questions from Trader Gav's post. I will post the next 4 answered on Dec. 27th, Thursday.
While I do spend around two to three hours on blogs, I do so with the intent of scanning for potential buys for the following trading session. Often times other bloggers’ stock scans pick up on stocks my scanner fails to identify as possible buys. Books like Trade Your Way to Financial Freedom by Van K Tharp have convinced me that a “holy grail” does not exist. There a many successful traders with different trading styles.
- How much time have you spent on studying markets, developing your own trading strategies and style?
I have to admit, I haven’t spent nearly as much time as I should be developing my trading style. Most of my “development” has come through the execution of trades and “feeling” out the market situation. I augment my “research” with that of reading up on current market perspectives of various bloggers and evaluating the market charts briefly every day. I’ve been behind in analyzing my past trades. For the upcoming year and beginning now, will be spending more time on developing my strategy as it is crucial for success.
- How much time have you spent on trading forums (e.g Elitetrader, forexfactory etc) or chart room such as wallstreak (sorry ,ugly) to listen to other people’s opinion (most of time ,nonsense)?
Last year, I spent a tremendous amount of time on trading forums looking for new ways on how to improve my trading plan. On occasion, I would get caught up on how a random trader thought stock X was going to go up because of a ridiculous reason. They spoke as if they’ve already seen it happen, and a lot of traders would eat it up. I did a fairly good job of avoiding those traps. But, I have to admit Google Finance forums can be a death trap full of nonsense. Be careful out there.
- How much time have you spent for yourself, thinking deeply, which trading instrument/style/timeframe/market etc that really suits yourself?
I’ve spent a fair amount of time thinking about which trading instrument/style/timeframe etc fits me best. Currently, I only go long, but with the market the way it has been the last couple months, I feel that it’s important that I learn how to short stocks. My primary focus will be on going on long and tweaking my trading plan to best fit myself.