Howdy folks and Welcome back to a very much over due article on stock trading! If you are new here, then Welcome too 🙂
Now although my website and blog appear non existent at present, well at least on paper anyway! I can assure you that I have been working and studying like an obsessed crazy person day and night continuously with very little rest or sleep!….. That is how bad I want to be the BEST STOCK TRADER I CAN POSSIBLY BE! Now I don’t mean this in an ego-tistical way(yes that’s tistical, not testical!) I am NOT trying to be the best stock trader ever, my goal is to be a consistent, successful as well as self suficent trader with an edge, where I can trade in and out of stocks accurately and profitably time and time and time again, so that I have 110% total freedom to live my life on my terms with NO BOSS above me!
So any how lets trade on with the show 🙂
What’s With The Fancy title?
I thought I’d put in some fancy words and sound like a wise ass just for laughs! Well really all the title means is the mental cycle/pattern of stock trading, to put it into simple context!
So OK I know it’s been a very long time since our last post, and this is only because i’ve been focused on studying hard and putting my trading thesis and plan of action together, which I tweak and adjust along the way through trial and error. It’s easy to think that I have been dabbling due to the lack of written content on the Trading Spike website, but I assure you that I have been working round the clock, studying and learning where ever and when ever I can!
The amount of great content that I have read and studied has been mind blowing, and to think that I started out back in June 2015 like a little lamb; all excited and eager to make money on the stock market, OK lambs don’t get excited to make money, nor do they trade stocks hahahaha!! Having said this, there are many traders out there that trade like sheep!
My dream has not disappeared and I will NOT stop until I succeed and carry on learning more, as I’m still very passionate about what I do, and man have I learnt an incredible amount of knowledge along the way and grown in confidence too.
How The Stock Market Works
So the stock market all around the world is the same all over, there’s the supply of stock and the demand of stock. The bigger the demand is for any given stock the higher the price will go with in reason. The bigger the supply there is to any given stock, usually the slower it will rise or fall in price. The stock market really is this simple on these terms, but of course the technical analysis is where it all becomes really interesting. It is the mental state of the human brain that causes the unreasoning or reasoning of entering any one trade, and this is where lies the truth of how to overcome the money problem with trading!
So let me explain the psychological side of most traders!
While many if not most traders dream of becoming rich with stock trading, there are so many important angles that are missed or even miss understood by beginners. This is not to say that I have not made any mistakes myself, as I have made hundreds and continuously learn all the time. I think that one of the most common problems with traders is that they struggle to think for them selves with a consistent plan of action that they fully understand and know how to utilise properly!
I believe that the best way to learn how to trade successfully is to study those that are at the top of the game, but to also become self sufficient with your very own finesse.
It amazes me how so many wannabe traders just want the next hot stock pick and don’t care about the entry and exit price or how the stock works, and they just want to make money! The other type of trader is the one that goes “I think XYZ stock is bullish and I think it’s going to do this, but what do you think Bob?!”
If you can’t think for yourself and make your own decisions you will struggle to move forward in the stock game!
Yes we all want to make money as that is the reward of the game, but you have got to look at the much bigger picture of understanding the mechanics of what makes the price of stocks go up and down.
The truth is psychologically as humans we have been programmed from a young age that money is important, just like gravity, oxygen and food are vital for survival, we instinctively follow the rules of them!
Let Me Explain The Rules & What I Mean
So Gravity, Oxygen and food are ALL natural forms of energy created by mother nature that we all need in order for us to survive, and no matter what your opinion is on them if you abuse any one of them you die!
This is NOT an experiment or a test so DON’T, I REPEAT DO NOT do what I write here.
If you stop breathing oxygen you pass out, if you stop eating food you eventually starve and if you go against gravity you come back down to earth!!
Simple science right?!
This Is The Greatest Thing You Will Learn About Trading Stocks Today!
Did you know that money is a man made product??!!!
You can live with money or without money, and of course how much you have or want is entirely up to you!
Now here’s the beauty about making money with stock trading…….DRUUUUUUUM ROLL…………….
MONEY IS MERELY THE BI-PRODUCT OF YOU PLAYING THE GAME RIGHT!
This is an unrealised FACT by most traders!
You see most traders set out in the battle with amounts of money as their target and forget that stock trading is merely a game, just like chess, poker or even monopoly are, and all of them have rules that require strategy, discipline and many other key factors to make winning simple or difficult for you.
Many Want To Eat, Yet Few Want To Hunt
I like this saying as it is very true in life that most of us struggle when we start something new in life, and it is even more true that more of us are too afraid to even start into the unknown of anything new.
How My Trading Is Going
So I have managed to acquire a small steak to trade with which I started with at the end of January 2017, and in total I have made 9 trades.
My first four trades were doozies and I quickly adjusted to what I did wrong and took smaller positions! My next two trades were successful and then my next three were small losses!
On paper my trading results look unsuccessful overall, as carrying on from where I traded with real money last time it was 3 points (Wins) to Wall Street and only 1 point to me!
Now it is 10-3 to Wall Street in total!
I am not disturbed at all by the score, as every single trade has been a learning curve, and I am to expect mistakes at this early stage of the game.
I would rather make mistakes and learn from them and correct them than get lucky by taking a big risk and lose it all or follow someone without knowing why I’m getting into a trade.
I will put up all my trades both good and bad in due course like I said.
So What’s Next?
As I continue on my quest to successfully and consistently trade the stock market, I am always learning and studying what works in this game and keeping my eye on the bigger picture.
One successful small trade at a time adds up to big gains over time with a consistent plan and strategy! Oh and yes I am under the PDT rule with my small account!
Ooh this is my new trading setup by the way 🙂
The final note on this post…
It is not the critic who counts, not the man who points out how the strong man stumbled or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena; whose face is marred by dust and sweat and blood; who strives valiantly; who errs and comes up short again and again; who knows the great enthusiasms, the great devotions, and spends himself in a worthy cause; who at the best knows in the end triumph of high achievement; and who at the worst, if he fails, at least fails while daring greatly; so that his place shall never be with those cold and timid souls who know neither defeat nor victory ~ THEODORE ROOSEVELT