Thoughts3

My Thoughts:

My Trading Strategy - It has been pretty successful so far. Looking at the trades I made and how I decided them, made me realised that my trading strategy was very simple. I just traded on the most obvious trend – support and resistance. (Note to myself) when I said “the most obvious trend”, I am not referring to trading when the prices have move away from the support and resistance lines (I am still bad at this).

The way I trade would be – when there would be double top or double bottom and I would ask questions to myself about the fundamentals and as well as the market sentiment at that time. I did not even use trendlines to trade because I am still bad at it. I am just trading using the support and resistance lines. Then, I started to think – maybe the most simplest strategy would be the most effective way to profit from the market. Why? Because there are many people who are doing the same thing I do. This setup is easy to understand. Anyway, this would be my first strategy to make a profit.

I really feel that I need to improve several things in this FX trading. I need some schooling in size positioning. I feel that because of this I am missing opportunities in making a larger profit.

I guessed playing cards (texas holdem) helps in my own trading. The way I play cards is quite similar to trading. I would investigate/test my opponents on how they respond if I reacted this way or that way (i.e. putting the amount of money into the pot & the time to make my decision). After I found out and verified what the characteristics are, I would make my move. If I made the wrong move, I would start questioning myself – self-correcting. I think the most important thing in this game is that I need to put myself as an observer and look how the game played (this would refer to the trend of the market). After I roughly know how it worked, I would then make my move (this refers to the trade setup and place the trade).

In regards to equities, I have read Benjamin Graham’s Book (the intelligent investor). To be honest, I could only get maybe only 10% into my brain. I need to reread this for several times. It is because I am really interested in value investing. Hard stuff hard stuff. Sadly, I do not have an IQ of 200, I only got determination to get to the top. And, I am proud of that. Maybe it is because that is the only thing I got. And of course, we people would like to feel good about ourselves, so we would try to find out what so good about us to make ourselves feel better. Interesting..

Note to myself:

1)      The simpler the strategy, the more powerful it would be.

2)      My 1st Trading Strategy – just using (1) Resistance and Support lines (b) get the feel how the market moves.

3)      Learn Size positioning

4)      Learn value investing in equities

5)      Be an observer in trading.