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Making a Living, Not Making a Dying

Alarm rings at 6.  Shower.  Dress.  On the job from 8 to 5.  Commute home.  Eat.  Watch TV.  Bed.  Repeat.

Trade Stocks Market Live Making a Living, Not Making a Dying

80x15 Making a Living, Not Making a Dying
(1/365) Self Destruction by JoLi Studios AKA Leasepics, on Flickr.  This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

I Have Sinned

On December 19, 2013 I made an impulsive trade.  I bought 670 shares of JFC worth PHP 118,751.68 (1 USD = 42 PHP).  That morning of Dec 19, I had no plan to trade.  I opened my trading account and to my surprise the PSEi gained 1%.  For the past days, PSEi was gaining.  Looking at my indicators, the MAs were converging and I could picture in my mind that a cross-over was impending.  And so I bought JFC.  I must admit that the buy was impulsive and I broke my rule of not buying unless the shorter MA crossed the longer MA from below, signalling a bullish trend.

I Was Tricked

I bought JFC on December 11, 2013 at 167 per share.  At the time of buying, I did not know about indicators.  When I learned about indicators, I came to an upsetting realization.  I bought JFC at the wrong time.  Me buying at the wrong time, was somewhat confirmed by dropping of the share price to 161 per share.  I knew I was wrong buying and I had to get out of the market while my loss was still small.  One of my trading rules was to limit my loss to a maximum of 8%.  My loss was 4% which was still acceptable but I chose to sell and exit the market anyway.  I did not want to wait for my loss to reach 8% before I sold because I was convinced that I entered the market at the wrong time.  Two days after buying, I sold JFC and took my loss of PHP 365.95.  Three days after selling, JFC rose to 179.80 per share.  Had I waited 3 days before I sold JFC, I could have exited the market with a profit.

Moving Forward

Currently, I have a loss of about PHP 6,000.  From now on, I promise myself to honor my rule of not buying unless the indicators signal a bullish trend.  My loss is 5% and still within my maximum loss limit and so I can still hold on to JFC.  If the market continue to be bearish, I will exit as soon as I have a profit or my loss exceeds 8%.  I am putting DMC in my watchlist.  If the market becomes bullish, I will continue to hold JFC and buy DMC.

bored 1485344586 Making a Living, Not Making a Dying

Chanzj / Pixabay

Things I learned

  • Do not make impulsive trades.
  • Follow your trading plan.  I should concentrate on following my trading plan and not on how much profit I can produce.  I have confidence in my trading plan and if I follow it well, the profits will naturally come.
  • Do not sell when my loss does not exceed 8%.  Sometimes, it’s better to do nothing than to sell.

I want to change my life.  I want to live.  I want to be an expert trader someday and make a living.  I want to be making a living, not making a dying.

Jesse Fin
 

Jesse worked as a journalist for a large tv station in Korea in her past life. She now works full time at home as a blogger and loves to help her friends manage their personal budgets.

Click Here to Leave a Comment Below 1 comments
Nick | Millionaires Giving Money - May 7, 2014

Trading requires discipline and when you break rules you start to lose. It’s good to have rules in place when you trade otherwise you could wipe yourself out with one losing trade.

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