Slightly more than a week ago, I decided to try an experiment with myself. As I've never tried trading before, I wondered how I'd fare in the attempt so I decided to test out my ability.
This led me to scan a couple of stocks and "stock pick" so to speak, based on indicators. Each transaction is noted down in an excel sheet to allow as accurate a record as possible.
As to the names of the stocks I'm too bashful to say at this time. I've "added" another 2 counters over the last two days though. Suffice to say that in a week plus, the portfolio seems to be performing quite well. Well, better than I expected anyway. Nonetheless, It's just a personal test, with nothing to boast about. A personal challenge.
My aim in this private experiment is:
1) To see how well indicators work and which indicators work for each stock (and for me)
2) To experience what it's like to trade
3) To learn what is important to do for each trade
4) To build up some confidence in the trading area
Like most experiments, there are limitations. First of all, there is no actual money involved so my emotions are held in check without much trouble. I realize this. That said, even if I do do really well, I'm not going to plunge into it and bet the house. I also realize it's a gradual process of being able to handle each trade with a sum of cash that isn't going to cause me to lose sleep over. Secondly, I'm also not going to be able to learn to handle loses, which is more important than handling winnings, so I've read in many articles, blog posts and books. This is why if and when I do decide to trade on a month to month basis, I'll start in small amounts to further build up my confidence and competence.
I will be fine tuning this little experiment along the way the more I learn. So hopefully, in time, I'll be proficient at another way to generate income.
Wish me luck,
~K
P.S. By the way, any tips on how to start trading efficiently or trade in general would be most appreciated so feel free to leave as many comments as you please. Many thanks in advance. =)
When I first started trading I attended close to all those free trading previews and attended free trading courses provided by CMC Market to its clients. Get yourself educated and appreciate it first.
ReplyDeleteHi Kay,
ReplyDeleteIt'll be very helpful if you post your reasons for buying, the amt of capital allocated to each trade (I assume you practise money management too?) and the accompanied chart. Do the same when you sell, including the ROC of the trade.
That will certainly attract pple to comment on it. At the same time, it'll enforce a discipline on trading that will help when you eventually switch to real money trading.
Thanks for the advice CW8888. Will take it heart. =)
ReplyDeleteI don't think I can attend the free CMC courses unless I have an account with them though. But yes, I'll definitely be reading and learning more. Thanks again for bothering to comment CW8888.
Cheers,
~K
Hi LP,
ReplyDeleteYeah I agree with that point on recording the reasons. I tend to forget why I "bought", which made me realize that if I don't know where I went wrong, it'll be hard to improve.
Thanks for the suggestion LP. Yeah any additional buys, I'll put it in.
~K
Sometime, we have to be very open-minded to be a student, then only a master will appear.
ReplyDeleteBe open to criticisms. People critcise because they may have read something buay tahan by their experiences; then we have to do soul-searching within ourselves why they have reacted so.
What you say is very true CW8888. I appreciate you (and anyone else for that matter) taking time to teach. Will do my best to learn. =)
ReplyDelete~K