First takeaway of the year in trading

The first takeaway of the year is that I have not learnt the art / skills of setting stop loss properly and got @$#$^ whipped out (as a weak holder) before the share price started to climb.

This is a perfect example of how real life action vs practice vs theory can be so different. Eh hem, k, I am not much of a practice person.


Despite all that witchcraft of line drawings (doing TA), market observations and having mostly the right stock picks, I still cannot master my mind and psychology well enough to score some home runs with 2019 being a good stock year. 

This shall be another "try again" year. I am still skeptical about how much higher the bulls can run (which made me terrified of holding long trades for too long).


Next update is... I have finally dipped my toes into crypto, after much intro from Unintelligent Nerd. For now, the way I trade crypto is purely TA, no FA. I am not learned enough to do FA for crypto - cannot analyze their underlying potentials and understand what should be the target prices. From what I observed in this short span of 2 weeks, the crypto space is full of risks, narratives and speculations. Despite abundance of positive narratives (especially in the event of price spikes), it would be wise to also look at some negative narratives and chew on them.

Main things to watch out for (BTC, ETH) are policy changes, how popular's the utility, scarcity and any big whale dumping event. Stablecoins - since they tied to fiat, they are "too stable" for trading and can be subjected to inflation risk. As mentioned before, I am not a keen taker of custodian risk with companies not regulated by MAS so I signed up with Binance sg. Their interface sucks is too simple, so before executing a trade I have to do my witchcraft elsewhere. Also, it offers very limited cryptocurrencies for trading.

Not a recommendation for buying BTC but just wanna share this cool video. (The theme song is so addictive and nostalgic as I used to be a Pokemon fan.)




Happy Rat Year folks! Hope each of us find our own ways to huat this new year.

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Comments

  1. Happy CNY Rainbown girl!

    So refreshing to see REAL trader sharing REAL frustrations and REAL reviews of trading ;)

    Now you know why its easier to teach theory for a living than trade for a living!



    ReplyDelete
    Replies
    1. Hi SMOL,

      Yes, teaching with examples is not same as DOING with examples.

      Hope to see more of your veteran sharing too.

      Delete

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