Saturday, July 10, 2010

Thoughts on my trading performance...

I have managed a 50% profit for the year thus far. On looking back on my trading performance, my worst months came during market corrections. Although my best month was also during a market correction this was a bit of a distortion as I was 100% long options and I also deviated from my trading plan.

Although I think I could have done a lot better, I still believe that I have done fairly well considering that I did not have as good a trading plan as I do know. I have refined my stock screening, stock selection, market timing, entry/exit tactics, and money management rules to a point where I am confident I can make money in any market environment.

My ultimate goal is to turn my account into $1 Mil. Inspired by the stories of Darvas and Zanger I have always pictured my self achieving this goal in less than a year or so. However, I have realised that market conditions are nothing close to what it had been like at the time that these guys achieved their feats. So I have adjusted my expectations for annual profits down from 300% - 400% to 100% - 150%. Although I still think I can achieve the large gains in good years, in tough years like this one has been thus far, I have accepted that lower gains are still quite good. Also I have accepted that I will most likely take 5 - 7 years to achieve my goal as opposed to 1 - 2 years and the only way I will actually take less time is by sticking to my system and constantly refining it and adding more savings to my trading account.

Trading is a never ending learning experience. Since I started trading in August of 2007 I have not been consistently profitable until 2010. So I would say that I have learned a lot and made significant progress. I hope my years to come get even better.

Good luck and good trading!

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