Motivation to sticking to your strategy.

Hi everyone

I'm currently a equities trader, I enter into short term positions in ongoing trends with a view to take 5 - 7% consistently.

Each trade is roughly $10,000.00 give or take, my goal is 5% portfolio returns a month.

I spent a long time filling out the trading plan form I found on here, for anyone who's interested : http://thesharetrade.com/trading-plan/

Anyway, everyday I hear of people or someone will tell me how they've just made 15 - 30 - 80 - 100% on some speculative share they've bought in a matter of weeks. Then you hear stories of people putting in $x on a hotip and coming out with $400 k and paying off the mortgage.

Now logically I understand, these cases do happen but not often - also for every winner there is a loser.

Just hearing those stories makes me want to scrap the strategy and just buy pennies, when I first started 'gambling' in the market I used to put all my capital into 1 stock which has just fallen rediculously. I wouldn't know anything about it I was naive and just thought that it would go back up - I did make alot of money this way however looking back I'm pretty sure it was gambling.

I know I shouldn't just scrap my strategy on the basis of those stories and my experiences when I knew nothing however hearing those stories is kinda demotivating when you work hard and slowly accumulate bit by bit..

I'm just wondering, what do you guys think when you hear those stories and how do you guys stay back on track?

Sorry for the long winded post, I appreciate all comments.

Thanks

Andrew

Actually wow... typing out my frustrations actually made me feel better...

I would still love to hear your thoughts though, please share!

If you know how difficult the route is to become "consistently" profitable, you really don't care about any friend of a friend who made 600% on a gamble. Stop listening to what the losers are doing; you've got to act like the few, not the many.

I echo what Barry has stated, also do your friends/contacts know how and when to short a stock, a skill that you no doubt have acquired which, when combined with your fundy analysis and TA, should yield up good opportunities and probabilities whatever the overall market sentiment?

The principal reason equities and commodities have gone through this secular boom (rescue?) since 2008 has been due to Q.E./Tarp/bank bailouts/corporate rescues by governments and central banks..at some stage that tap has to be turned off and equities will fall back..

Thanks for the replies guys, I guess I was just voicing my frustration.

It just seems that those who've made a quick buck take it and run and due to the amount made are set (I guess it can be akin to winning the lotto). If I wasn't any wiser I would be very enticed to do it too...

I should stop worrying what other people are doing and improve what I am doing.

Cheers

Bear in mind that most gamblers usually talk about their big winners alot, but don't talk about the losers so much. This applies to horse racing, poker, casino games and trading/investing. I've seen people bragging about big wins in all of these pursuits and when I probe them further they admit they lose most of the time or they become very evasive.

Regardless, some people are just lucky. As a collective group, however, the people you talk about are losers and you do not want to be like them. Just because 1/100,000 gets lucky and keeps his winnings somehow shouldn't change anything. Try to emulate winners not losers.

As Trader, you should not look at other peoples performance and be jealous or envious, as i think it take your mind off how you are trading. As long as you are an improving trader then you are doing well in moving forward. It consistency you are looking for. The challenge is to better yourself not to beat others.

binscab said:

I should stop worrying what other people are doing and improve what I am doing.

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The only person you are competing with is yourself.There will always be someone richer, better, faster, better looking, healthier, luckier...

I always ask myself, if i want to swap someone's financial situation with mine, i must also take the rest of their situation too. Mostly i don't find anyone that i would 100% want to swap with.

Write yourself an email form a different address, call yourself all the stupid feckwits and useless cnuts going for every mistake that you made in not following your plan. Re-read it before you place your next trade.

Haha thanks guys for all the support and positive reinforcement.
Sometimes you just need a reminder...
It is greatly appreciated, best of luck to you all!

its natural to feel like this. "everyone else is making a killing in this market" - that is NOT true - FACT. if you can make 5% a month thats 60% a year, thats amazing returns !!!!!

Don't forget bintscab, If you fail to follow your strategy then you may as well not have one, hence the self directed venom. Its not personal, I'm really quite a nice bloke if you meet me in the pub (and someone else is buying).

Motivation for sticking with a strategy........................................................................................................................................... It has a positive edge, It makes money and doesn't put at extreme financial risk.

I'm sure there would be a few more good reasons for it to.

Don't forget there are a multitude of ways to report % profits (as shown by another member of t2w).

For example, a punter with a $100k account might risk $5k on a stock and make $5k, hey presto 100% profit.

Seriously, do you really care what other people are telling you they're doing? Just tell them you've made twice as much as they have.

Motivation for sticking with a PROFITABLE strategy is to make money. If you won't follow your own rules you will lose all. Forex marker is a dark place and your strategy is ray of light that helps you to find way to place called Profit! Step right - step left and you done!

Cheers for all the replies guys, very helpful and was a good clip on the ear that I needed.

Joseff, I trade shares only but I'm sure the same applies. The strategy has been profitable so far, but that's only with about 6 months in market, I need to stick to it to ensure it is profitable over the long run. Must not get side tracked with what others are doing!

Thankyou all! Happy trading.

binscab said:

Cheers for all the replies guys, very helpful and was a good clip on the ear that I needed.

Joseff, I trade shares only but I'm sure the same applies. The strategy has been profitable so far, but that's only with about 6 months in market, I need to stick to it to ensure it is profitable over the long run. Must not get side tracked with what others are doing!

Thankyou all! Happy trading.

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Thanks, man! The same to you!