Saturday, February 16, 2013

Setback and Wake-Up Call

Good times fly, now turns ugly in 2nd half of the year 2010 and onwards. It was a blind year for me, I would say. I almost lost all of my capital due to my poor trade, impatient and indiscipline fighting with my emotion! I am too greed and I trade more on contra and FKLI in big volumes with the aim to clear all my debts fast (this was my objective for 2010).

I am actually forcing myself too hard reaching out of my limit. I was struggling and it is the most painful time I need to ride through on that year. My capital was slowly eaten by the market and depleting fast. I did not believe what have happen to me. I try to win back my losing money instead making more losses. Finally, I told myself let’s stop! I can’t go on like this and I can go worse and broke! At that time, I only left with RM6K in my trust account and FKLI fund all gone and have to pay for my losses!

So in 2011, I have been kick-out from stock market totally. Staying sideline for almost a year, re-evaluating my mistake and re-engineering my trading techniques and myself. What is my mistake in 2010/2011? It is about my goal. 1) Timeline too short and hard to reach. I set to gain RM500k in a year! I am too serious! 2) I am out of focus! It is more about my poor trading psychology - greed, fear, confusion, impatient, hope and expectation that contributes toward my trading mentality failure. My emotion is the culprit! Simple as that!

Now I am carrying one of the important quotes with me “Don’t play the market all the time. It can’t be done, too tough on the emotion” - Jesse Livermore. I have to stay more focus this time and trade only when I wanted to trade. With this all set, I am ready to start again. This time I want to go easy and in slow pace. Attaining my debts free status and building my personal wealth still will be my main objective. I have set longer period to achieve my goal, that is about five years target and I am looking for a smooth sailing years for me.

In Dec 2011, I move into stock market with only RM5k as my capital! With only small amount of cash to start, I need to fully make use of my capital to the fullest gain as much as possible. In other words strive to be more efficient and productive! It is very challenging but not impossible!  

My productivity mindset turn out to be good and for my 2012 performance review, I manage to make more than 200% return! Thanks to my own motto of motivation - master my trading system and master myself! If I can maintain such momentum for five more years, I will be on track to achieve my financial freedom by 2018.  I am sure I can make it! :-) 

For my 2013 capital, I only use RM10K as my start up - my new rule is always cash out yearly some of my capital gain out from the market. I use it for debts payment and some saving for emergency use or in case I meet up with my setback again I can use this money as my financial rescue in the stock market but I foresee it will not happen again! 

Since the 2010 incident, I have gain more knowledge and I am more confidently prepared myself. Yes indeed, emotionally and technically ready to beat the market again! Well, in order for me to stay very fit in the stock market game I have create myself a motto - "Trade with Confidence". Yes, trade with confidence is my own inspiring words since I start fresh 2012 in stock market and will be my lifetime motto till I retire from stock market! Good luck to me! :-)

That's all about my stock trading journey and hope you enjoy reading and wish you all good luck as well and happy trading. Cheers! 

My Stock Trading Journey Stories
My 1st Reaction As Stock Market Newbie #1
My 1st Reaction As Stock Market Newbie #2
Money Not Enough #1
Money Not Enough #2
Freelance Stock Trader

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