My Trading Experience

I’ve been trading part-time since 1986.  Like everyone else, it was a turbulent start with multiple years of losses.  I began my trading experience with the futures market- mainly the T-Bonds futures. Over the course of the first 10 years, I was only about 30% involved with the market; thus, I continued to incur losses with a couple of breakeven years.  Luckily I had the good sense of keeping my losses small so that I was never wiped out.   It was at this time that I started to spend money on trading systems, books, and videos.

(Lesson #1: Keep your losses small so you can survive to fight another day, week, month, or year.)

Then in the mid-1990s something happened.

I switched to stock trading and my fortune began to change.  Unlike commodity where the fundamental news are beyond my interest and motivation to process (I was relying on technical signals only); stock trading allows me to follow the “story” behind the company.  To make a long story short, I found I’ve a knack for analyzing the fundamental story of a stock to get about 60% success rate on my picks. Despite my unrefined trading techniques and the lack of iron-clad discipline, I was lucky to come out with some big winners that allowed me to recover money I lost from trading the commodity market.

(Lesson #2: It is important you find the right trading arena to match your personal interest and skill set.  If I had stayed with commodity trading, I don’t think I would still be trading now.)

Even after devouring many books and watching tons of videos, I was still having problem “sticking” to the rules of any trading system I learned.  Thus, my trading journey was not without hiccup.  There was a period I almost lost most of my trading fund but was saved by the “rise” of the stock I practically went all in.  This redemption caused me to seriously review myself before moving ahead.

In the early 2000s, I stopped buying books and videos and started learning Tai Chi Chuan (a form of Chinese martial art called Shadow boxing) and meditation.  Slowly and gradually, I began to catch my own emotional response to the trading signals.  After years of trials & errors, I’ve refined my trading system to take into account  my emotional strengths and weaknesses.  Of course, it is not perfect; but it does give me a consistent trading behavior that match my personal trading system.

(Lesson #3: Look into yourself to find your strengths and weaknesses in your emotional responses to your trading system.  Figure out what to discard and what to keep in your trading system to match your personality and emotional tendency.  It is much easier to tweak your system than yourself!)

In this blog, you will have a glimpse of my trading style based on my posts.  Be aware the way I trade may not be compatible with the way you trade.  I’m very quick with my trigger to cut losses which can cause me to miss the trades (opportunity cost).  On the other hand, it also saves me from colossal losses.  In the long run, it is the losses I cut quickly that always keep me bouncing higher and higher.  So what if I miss a few opportunities to make money by cutting my losses fast; it is more important that I’m still here to take advantage of the NEXT opportunity that counts.  This is the basis for The Bouncing Ball Theory.

If you are reading this blog, thank you for visiting and I hope you get something out of it.

Cheers!

My performance since 2008:

Account opened on August 2008 Annual % % change from August 2008
12/31/2008 15.14% 15.14%
12/31/2009 66.02% 91.16%
12/31/2010 50.93% 188.53%
12/31/2011 -19.55% 132.12%
12/31/2012 10.05% 155.45%
12/31/2013 11.94% 185.94%
12/31/2014 10.93% 217.19%
12/31/2015 -24.30% 140.13%
12/31/2016 33.10% 219.61%

2 replies

  1. Just curious have you ever had a 10 bagger or better. You intense moment to moment trading analysis would seem to cause much trading. What is the longest you have ever held a position? This is not Warren Buttett’s method of holding.

    • I’m kind of a late bloomer when it comes to snapping a 10 bagger or better out of one stock. 5 bagger is the best I had done. But when you think about it, 10 bagger is simply a form of tactic to make 10 times of your investment from one stock. What about if I make a 10 bagger by stacking five wins of 2 bagger from different stocks? Same result but from two different tactics.

      But this is not to say that I’m not searching for the 10 bagger potential. I sure am. The trick is to know which ones I should hold. Follow my blog and we will find out…

      Thanks for your comment.
      Cheers!

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