Saturday, April 30, 2016

Episode I: Planning to Plan




      Hello ... this feels a little weird ... writing a blog to my non-existent followers/subscribers ... but I'll make it work. This is a space for me to record my experiences as a stumble (putting it generously) through learning the ins and outs of trading the stock market. The plan is to learn a little here and there growing my knowledge to the point where I feel comfortable making my first real trade on the exchange. 
      For a little background and history about myself I'm just another guy out there intrigued by the opportunity of making money while sitting at my computer at home. Who knows if that will actually happen. I'm not rich and not poor. I live comfortably in the low middle class with limited money to just throw into a brokerage account. Growing up my father dabbled in the market making some money here and there but really didn't have enough time to put into it to make it worthwhile. As a young tyke I was interested in the process and would spend late nights sifting through possible short term stocks we could trade. He taught me the extreme basics and a little strategy that at this point I have mostly forgotten. So, my journey begins. My knowledge level is abysmally low but my motivation level is high. 

The plan:

The plan is 4 steps: 

1) Make a plan - That is right. The plan is to make a plan. There is one thing that seems to be universally accepted among the trading community and that is that you MUST HAVE A PLAN. Talk to anyone who has been successful in this line of work and I guarantee they have a (VERY) detailed plan WRITTEN DOWN that they religiously follow, test and tweak continuously. This is the logical first step and makes me feel good. I like having a plan before I jump into the unknown. Hence this is where I will be starting. I cannot go any further without a plan.  

2) Test the plan (paper trade) - this is where I'll put my newly developed plan (probably shit) to the test without actually risking any of my money (that's the important part) while honing my skills, learning concepts, and getting used to the tools of the trade. This phase will include choosing a platform to paper trade with which I'll share with you my fellow journeymen/women. That process seems daunting.

3) Execute the plan - once I feel comfortable with my performance paper trading I'll make the leap! Man I can't even imagine what this phase will be like. It’s a while out so no worries now but I know that first trade with be nerve racking. I'll obviously be sharing all my winners here to brag about my awesomeness.

4) Reevaluate the plan - this is step 4 kinda? Reevaluation of your plan has to be happening all the time. After every trade I’ll analyze what I did right/wrong, by the book (meaning my plan that I haven't developed yet) or not by the book, etc. The key is that if something isn't working I need to take a step back, realize I suck, and fix it before pressing on. This concept is the reason for this blog in the first place. It’s my platform to force me to step back and analyze my performance. 

      So to recap ... Make a plan, test it, execute it, and see if I make money. I'll keep you in the loop as I go. Maybe you will learn something from me and my mistakes. You will see it all here. I'll post articles I read, cool resources/websites/books I found, people I talked to, newsletters I sign-up for, clubs I join, brokerage accounts I open, trades I make (paper or real), etc. If I do something you'll know about it. No hidden tricks or trades, 100% transparency. I want to pass with experience along to anyone else who is interested. 

      Ok. Boom. First post done. On to some research about how to make a trading plan. This should be interesting. 

-RJL 


*CAUTION* 
      The author of this blog is inept in the writing of the English language. He has no clue what he is doing and is sorry for the run on sentences, countless typos, horrific sentence structure, lack of vocabulary, blatant misuses of pronunciation and overall suck. He doesn't proofread and is too embarrassed to ask others to do it for him. He offers his sincerest apologies for your bleeding eyes. 
 *CAUTION*