Tuesday, May 29, 2012

Passion reborn

About 6 weeks ago, I spent some time considering what I really like about trading and a couple of things surprised me. For example, I realised that I love trading actively and that hasn't changed despite my big plans to move to what I thought of as a more mature and considered trading style which would give me time for other things. Quite frankly, with my kids both into their 20s, I have plenty of time outside trading hours and I can't think of anything else I'd rather be doing (for work). In fact, it occurred to me that I had cause and effect backwards; I thought I traded actively because of years as a market maker but I wonder if I simply gravitated towards market making and did well at it because I enjoy the action.

Since I've unashamedly returned to an active style, I've done pretty well and also found – in fact, remembered - that I can keep to a longer term plan despite the everyday noise.

The other surprise was that rather than a focussed book of two or three trades, I'm quite happy to be in, say, 15 positions even if half of them are just an outlet for tinkering and the rest are the serious trades.

The overriding insight I've gained is that I get pleasure out of trading and I'm once more excited to get into work and see what the day brings.

I still have to work on the balance between sticking to a plan and realising that the tide has turned but that challenge is a big part of the pleasure of the job.

Although I've been doggedly writing about individual trades, it's with an increasing lack of enthusiasm, because I think that the value of the trading diary over the last few years has been to help me find my way back to this point. I've learnt and taught myself a lot about a methodical and disciplined approach to trading and having assimilated that knowledge, I have returned to the very intuitive style of my earlier days with the addition of that technical backbone.

So, it's goodbye from me, at least for now. I hope my work has helped a few people along the way and I wish any traders the utmost success.

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