A Trading Plan

The Plan

Find a strategy from consistently profitable traders that has be backtested over 6 months that shows consistent returns

I feel down losing again and again, but I have to rely upon and ultimately trust a strategy that has been backtested over months

I can't trade... yet

I know you've been struggling with trading for a while. Accept that what has happened has already happened. Everything good takes time. Don't talk yourself down as you know that studying for your university degrees took five years. Be patient.

Know that you have achieved all your goals in the past. You are still on a journey that would likely lead to your goal if you keep going. All your goals came with many failures along the way. All your goals took time to achieve. For instance, think about all the failures in your pick up journey and applying for internships.

Think ahead to one year in the future. Think of it as a marathon. I want to survive hundred trades, instead of riding each trade like it is life or death.

You have had some successes (focus on the positive). You have learnt to take a mathematical approach, reduced blind gambling, removed expectations, become more accepting of your losses, and are more patient with yourself. You have fewer blow outs since you hired someone to trade for you (Mar 2023) and no blow outs when you gave them the password to control the trading (Apr 2024). You have 10x'ed three times before so you know it is possible (Jun 2022, Sep 2022, Mar 2024). You have successfully pairs traded for three years so you know some trading systems do work, even if they are not as profitable as you want them to be. You evaluated many brokers and calculated that options returns are lower than futures returns based on day trading.

Oftentimes I can get the direction right but still lose money. Two times in 2024 I took my own trades and got the direction right, but both times lost money. I bought OTM options along with CFD trades in April and mix of ITM and OTM along with CFD trades in August (a small loss with ITM and big loss with OTM). This is why I should not focus on trying to trade myself.

I know it is dumb to take a directional trade without a fixed timeframe. I could wait 5+ years. I could miss the target by 100 points. Short trades have a poor payoff (Sqqq only doubled in the Mar 2020 drop, no top 20 billionaire got there by shorting, no stock doubled during the GFC). I remember the feelings of anger, hopelessness, hitting myself when I lost. I remember depositing more if it goes against me.  I don't want to go through that again. My speculation is sometimes wrong (Spx in Oct 2019, Tlt in 2023)

I know there are people who do make consistent profits from trading (Sep 2024). It is possible to replicate them even if few make it. If things don't work out, I will find experts and learn from them. I also read these tips from successful traders: Have the ability to place orders quickly. Don't have big losses. Trade on momentum. Set percentage buffer for stop loss. Stay true to your way of trading. Trying to fight Wall Street is like trying to take a casino down by gambling. Trading is not about ideological campaigns. Trading requires self-control, discipline, research, dedication. Greed will be your undoing. The market is never wrong.

Yes, you have already tested 80 subscriptions and all of them didn't work and you wasted months and years trying to find one.

Be patient and don't get stressed about it. You put in effort into the testing. Keep persisting. It only takes 1 server to work to make it. Sometimes it's best to be nurtured away from the thing you are trying to achieve. Leave it alone and do something else, and it will come. Yes, there have been many failures but accept that this is part of the journey. Accept what happened.

Above all, dont risk what you can't afford to lose. Warren Buffet wisely said: "Never risk something you need for something you don't need."

Jason Wang is my motivation. He is living the life I want. Fit, wealthy, well travelled, eating nice food

Trading or business the only way to get there

I need to be prepared to lose - I lost many times before. Have funds set aside in case I lose

Towards the end of 2024, my trading is in limbo but I still believe.

I lost with traders I thoroughly backtested. I had expectations about trading services that didn't deliver

• I decided to cut those traders loose

I blew up my account from having access to my account. The biggest risk through my whole trading journey has been myself trading and making rash decisions without a strategy

• In April I fixed this issue after allowing my trader to change the brokerage password

I blew up my account taking my own trades in April amd August and sizing too big. I had a plan but it went against me.

• I accept these losses that already occurred. I am focused on the future returns of strategies and not seeking to recoup past losses

I can do backtesting but can't be all consuming. I felt like I was dying each day. I am pychologically hurt from trading. I was too focused on trading. This is compounded by limited social life and not living the way I want. At what cost is it all. It is taking away from me, not satisfying. and draining my happiness and energy. 

• I will focus on other areas of life. A nice meal ok but I have to have a vision for my future for the next year
• I separate myself from my trading. Trading results are out of my control