I've started several journals on futures.io (formerly BMT). I like to start new ones when I feel like I've made another step or gained a different perspective on my trading style. Starting out in July 2014, I opened my first brokerage account with tradestation and started SIM trading. Before that time, I really knew very little about this world of stocks, bonds, futures, even as so far as to throw away the paperwork I would receive for my 403b without looking at it. Not only did I know nothing, but I also wanted nothing to do with this world.
Then I kept hearing on the radio about the fees being charged to managed accounts, and how big of a chunk they take out for very little added value. After finally looking at my account, I realized I was paying around 2% yearly fees to track the general market. That's when I got mad and decided that I wanted to learn about finance.
When I pick a hobby, I have a tendency to throw myself completely into it. Starting in July, I read voraciously through books about trading equities and futures, psychology, risk management, market structure, etc. Most of the books that gave specific advice, however, promoted scalping.
Now scalping is a relative term. To a buy-and-hold trader, a few months is scalping. To a a swing trader, a couple of days is scalping. Yet I really had no idea about any of these definitions, and just followed what the books told me - setting risk:reward ratios, stops over/under swing points, following MAs and other indicators, getting in-and-out of trades. Unfortunately, this style of trading fit perfectly with my personality - fast, psychologically satisfying, and action-packed. But what I found is that my personality is prone to the many weaknesses of these quick intrad-day trades, and I would get out of good trades too quickly, let bad trades run, repeatedly get stopped out by moving my stops out of fear, etc. In short, scalping on a too short of a time frame causes me to lose money. I still succumb to all these tendencies but now I'm aware of them and work consciously not to succumb to them.
The biggest impact on my trading style was definitely the SPOO thread and Tigertrader's advice and method of trading. While it doesn't fit my personality (at least for now), I've learned to look at the bigger picture, understand market context, intermarket analysis, the expanded profitability of holding longer term trades that are working. I'm still not able to do it, and definitely scalp much more. I figure somewhere in the middle between short 5 minute scalps and multi-day holds is about where I'm at.
What prompted this new journal was coming across a thread by BigMike about when one should give up trading. I found that I tick all those traits that makes for unsuccessful traders, such as not having plan. I decided that while I really need to write down the plan that's in my head, though it may not be as concrete as say price moving above a 21ema with an upswinging MACD. That being said, I am an indicator junkie, and always looking for indicators that help me visualize market structure.
The traits that I do have going for me are that I have a day (nightshift) job that provides well for myself and my family. My wife also works, and her income will increase by an order of magnitude next year, so we don't have any immediate financial needs (other than huge student loans to pay off). While I blew 20K initially over several accounts, I've moved on to using my (now rolled over) IRA account to trade. Many people say it's bad to use to IRA to trade futures and options, but I'm not relying on this account for my retirement. While I would like to build it up, if I can't, then I'll know trading isn't for me and I won't cry over losing it. The account started out with 126K when I took it over, currently sits at about 150K, had about 200K at its highest point. Trading with a higher account balance has had a huge and immediate impact on my ability to be a better trader. In fact, after gaining understanding …