The wonders of the ZF system is that you could actually learn and choose what kind of trader you want to be based on your schedule, personality, and preference (See types below).
Day trading – Attempts to profit from the market within the day, leaving no positions open when the market closes, and does not leave positions overnight.
Swing Trading – Attempts to profit from the market holding stocks within at least 2 days to a week.
Position Trading – Attempts to profit from the market holding stocks within a couple of weeks or months.
After much thought, I was leaning towards Day trading / Swing trading since patience is not one of my strong suits. After all, who doesn’t want quick gains, right?
Take note that when day trading, I’m very strict on my volume. I need to get in and out of the trade without much worry on liquidity so I could reap the rewards right away. Hence, I risk only about 10%-30% of my equity, more often than not, I set Target prices / GTC and my trade objective is clear, sell on resistance or first sign of weakness. It’s why most of the time I get ‘iwan’ on certain stocks after selling since I don’t put stops.
Now, there are times when I had consecutive wins, Superman Syndrome kicks in; feeling good about myself and break some of the rules. That’s where all the hard work/analysis, previous gains goes down the drain as I increase my volume and the trades goes south.
BANG! Cutloss in less than 10mins. I end up at break even and sometimes at a loss. When this happens I calm myself down, watch a movie, play basketball, read motivational quotes, probably play video games, accept, and move on (a better option though is to ask Robert Sy and Kidlat Santelmo some of their stashed chick pics or just backread their naughty convos. :3). That’s just how Ms. Market humbles traders.
These are the my common struggles when I activate my day/swing trading mode:
- More opportunities of over trading since you just might get enticed in trading every moving stock.
- Since good trades typically yield only 1:1 risk to reward or less, one loss can deplete the gains of several successful trades.
- Emotional Roller Coaster due to snappy decision making.
- Prone to whipsaws / chasing since you bank on momentum.
- Spending a lot on commissions and trading costs.
I’m still in a gradual transition from swing to trend following since that’s usually where the big money comes in and most of the time, that’s how my mentors Zeefreaks/Kidlat make a killing. I mean, look at their port snaps compared to mine:
Someday, I’d like to have the same discipline as them. I don’t rush or pressure myself and just go at my own pace.
Day trading is fun and exciting but we’re not in the market for fun and excitement right?