Friday, May 4, 2007

Why do I Trade? Part 4: The Trader's Path


I am a trader. I realised that I ve always been a trader - only that I did not realise until I was tested. And someone once said, "Man are like teabags, you will never know how strong he is until he gets into hot water". How true this is. Without being tested as I had (as mentioned in my previous post), I would never have known that I am a trader.

Money is not the main objective for me now. I know for a fact that I could trade for a living. I know that once I ve conquered the pain that I endured. I know that the experience though painful was there for a reason - to serve as a reminder not to be complacent and disregard the trading rules. To follow my own trading plan. To give me the strength that I need each and every time, that I must execute the inevitable stops. I ve grown and became wiser, though I ve yet to attain the wisdom that many readers of this blog has. I ve still much to learn.

One may wonder, could I have avoided the disaster should I have met with the wise people I met on the net? Whose wisdom I ve always revered? If previously, I ve met people like Ben, Lsb, Theng and Csong? To be frank, I doubted very much. Some lessons have to learned the hard way. Some mistakes need to be learned in order for one not to forget. Some experience is needed for one to advance to another level.

Today, when I trade, I look at points, I look at percentage. I really do not have much idea how much profit or loss I ve made until I close the books. I find by looking at points or percentage, I trade better. Perhaps there is less connection with the $$$, perhaps, I really do not know. But this is the manner I trade now.

But why do I still trade - Money? Freedom? Well, I ll be honest with you, they have bearings, and weightage to it. Its like once you ve tasted the money, you re tainted. Its most difficult not to be addicted. But there is considerable risks with a mere trading for money mentality, as evidenced by my horrifying experience.

Freedom? Well, I ve long know that I cannot work for others. I m a perfectionist. Perhaps the word is too strong but consider this - when I make a decision, I placed the highest importance for the betterment of the organisation. One may think, yeah this should be the way. But then, in reality, this is not the way. When top management makes a decision, the number one consideration is being placed in satisfaction of certain parties. Yes, I am referring to office politics. I, for one, when given the authority to make decision, does not bow to these inefficient, ineffective practices. When traveling, I do not buy wine for bosses, I do not lick boots, though my crime would involved laughing at boss' stale jokes during meetings, lunches or dinners.

Therefore, with such mentality and holding such principles, I am really not suited in the corporate world, particularly MNCs. However, I am not looking at trading merely as a means to be free from what I am not suited for. While I may be unsuitable for the corporate world, it does not automatically mean that I am suitable for trading.

Some of you may have heard me mentioning about "the charts talk to me". While I do not want to give an impression that I am a mad person, or I am talking bullshit, I feel a "certain connection" when I look at charts. And it is a feeling which I could not describe other than saying that the charts speak to me. I could as if hear the charts telling me the direction of where it is heading. OK, I realised I am beginning to sound like a lunatic. So I shall not continue about it.

But the long and short, I enjoy looking at charts, deciphering the hidden meanings. While doing something I enjoy, what's more, I could actually make some money out of it. Isn't it just perfect? Doing something you enjoy while able to make money out of it? To the end, why do I trade? Its the love of the game - love of trading itself. :)

And why is this important? Otherwise, when met with huge profits, I would be overly excited while when met with huge losses, I would be overly depressed. To which, both is detrimental to trading. There should be another motive behind the money making objective to trade. That said,

Good Luck and Happy Trading!



EDIT: For MTV - Told you its Youtube Mania here :)
This one by Clay Aiken, supposingly an American Idol (sorry, I don't watch :P)

17 comments:

lsb said...

Max, enjoy what u re good at, but keep ur sanity. i was once a junkie trader.

Trader Max said...

Lsb,
Frankly after "meeting" you guys, I m not sure if I m any good. BUT, I m sure I enjoy trading :D

Anonymous said...

max, thanks for sharing ur story. i will keep it in my mind.

RL said...

Max, haha.. Well said... actually, i have asked myself many times, why do i trade.. well, i used to think it is purely for the money... but these days, i tot i'm going nuts. i don't feel as much pain when i'm lossing money in some trades because i have learnt something from it... so now i know that it is because i enjoy trading. however, money is still an issue to me because after all, because part of me still trades for money. but i guess the main issue now is not money, but rather to find the most suitable system for me.. hehe... and best of all, i love trading.. hehe...

Trader Max said...

some one in ur msn: Thats such a long name. Why the secrecy? :P

RL: Glad you enjoy trading :) I believe if we concentrate on making good trades, the money will follow later.

Marcus Fei said...

Hi Max,

Thanks for sharing your personal journey.

You know what they say, "There are the old traders and there are the bold traders, but there are very few old, bold traders." There are just some lessons that we have to learn through own experience as no amount of advice and warning will help.

With your new perspective and love towards trading, I'm positive you will continue to do well.

Good Trading.

Marc
TradeSignum.com

P/S: After your "Pain" (part 3), I thought it is only prudent not to jump the gun (again) until you finished your story as there seems to be so many twists and turns ;)

Trader Max said...

Hahahaha Marc, it was deliberate.
Based on true story and well, life sometimes is full of surprises with all the twists and turns. Can't say life is boring ;)

Anonymous said...

Max,

Well said, love of the game, love of trading itself, love of profit and love to see the fund growth bigger and bigger.

I put a separate account for this fund hence I can see the fund is growing bigger n bigger, with bigger capital, I can trade more and I will be more confidence to trade n invest.

Ben Gan said...

Max,
Will you still love the game if you can't make money playing it?

Best of luck.

halim said...

Thanks for ur post. I trade coz i dun wan to become government servant anymore. I take a loan and invest it. My 1st target to pay back my loan then build my own system of trading. Hope in next 10 years I can be BOS of my own. InsyaAllah.

Trader Max said...

Investorntrader: Glad you enjoyed the story. Do always remember to follow the rules :)

Ben: Well, no one is born to be good. Well, perhaps there are. And initially I thought that I was the exceptional one. Yeap, ego. But not without a basis. A powerful system that compounds at a miraculous rate.
But when time came to test me, it robbed me the gains, and squash my confidence.
Money, from trading can be gained and lost easily. Gain due to system. Loss when one disregard the rules.
But how would one bounce from such adversity? If there is no love of the game, one may avoid it completely. The story would have ended.
But with a system that works and the experience of pain, I believe it is only a matter of time before
I become like this guy
Japan's Greatest Trader

Sciencegto: InsyaAllah, I hope your wish will come true but I really do not recommend investing/trading with loans. And I do hope that you would build your trading system soonest possible to have a trading edge.

Trader Max said...

Oh yeah, regarding the video, here's some information:

On April 30, Nippon TV broadcasted a special program entitled "Net society for 20 years: The man who earned 2 billion yen($16 million) per 16 minutes at online trading".
This young man (29-years-old) who made high-class condominium of Minato-ku,Tokyo a trading room from this January has increased 1.6 million yen($13333) to 16.5 billion yen($137.5 million) in 8 years. He is most famous individual trader in Japan.
On the coverage day, he bought and sold 200 of transactions for 4 hours and a half and he put up profit of 30 million yen($250000).
Even if you don't understand Japanese language, I hope you find it informative(his trading environment, style and many a monitor).

Originally posted by Kardel of Investlah Forum

ToeBear said...

Max,

Well done!...
You actually sounded like a good friend of mine who left a MNC to pursue his interest in trading...:)
perhaps it's the word that you used... to be frank and no offence to anyone who read this,...
Unless you have a good boss to support, it's really hard to climb the ladder in the corporate world these days except to occasionally 'lick' the bosses's shoe, putting up a fake mask, speaking rubbish and laughing at idiotic jokes... all these are things that are against the priciple of my life. So for me, the hell with all those sick antics.. For when I die, God will not judge me based on my career but by the way i've lived my life.

Trader Max said...

Toebear,
Tell your friend, he/she will be my inspiration ;) and don't worry about anyone taking offense. No one should take offense - should practise emotional control heh heh :)

Anonymous said...

Doing what you like. that is living. good stuff, max. something to ponder on...

Unknown said...

BEWARE _ BE CAREFUL _ YOU MAY THINK THE INFORMATION HERE IS INFORMATIVE AND CAN MAKE YOU MONEY _ DON'T.

MANY SUCH BLOGS HAVE MADE PEOPLE POORER>
MAXFORCE - AND BURSAMASTER - THE SAME. READ THEIR CALLS IN BURSAMASTER's BLOG.

THEY CALL FOR A BUY AFTER THEY HAVE BOUGHT SO THAT YOU CAN HELP TO PUSH UP THE PRICE FOR THEM> THEY HARDLY EVER TELL YOU WHEN TO SELL UNLESS THEY WANT YOU TO SELL BACK TO THEM AT LOW PRICES > DO YOU KNOW WHY? BECAUSE WHILE YOU ARE BUYING THEY ARE SELLING> AFTER THAT WHEN PRICE COMES DOWN< THEY SAID MARKET CORRECTION-HEALTHY OR "OPERATOR" COLLECTING AND THE PUSH WILL COME SOON>

TYPICAL TRICKS.


SO BE CAREFUL BE WARY OF MAXFORCE

grahamsmun said...

Dear Ken,
It is very discouraging to make such a general remark on MAX.In fact he is dedicated guy spending hours of his personal time trying to educate us the public.
It is okay if u dispute his finding but it is not alright u challenge his integrity and good intentions.
Ken to be more productive why don't u comment on Max's recommendation and list out area that u disagree!