I am playing the stock market these days and I cannot but express my total amazement at myself.
I started off with a theory of how to make money out of the volatility of the market and thought I should put it to practice. I started nice and steady with a conservative investment of 5000$ and executing a series of trades according to the strategy. They went quite well, in fact too well I must say because I started making 100% profits every 3-4 days. I became a pattern day trader.
And then I became greedy, and started having dreams of becoming a millionaire by the end of the year. Uh Oh! that lead me to making trades that were no where within the ballparks of the strategy I was planning to execute and they went all wrong.
It took me almost a month to get from 5000$ to 30,000$. But, it only took a week for me to go the reverse direction to -2000$.
In retrospective, the stategy worked, but I didnt stick to it long enough.
Perhaps I need to factor into account that sticking to the strategy should be a part of the strategy. I am slowly climbing back and recupering my losses now.
I still hope to be millionaire by the "end of this year".
Monday, January 5, 2009
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