Learning from false gods, ibankbitcoins as a trader part 2
This is the second part of ibankbitcoin's past, I recommend reading the part one of my trading past first.
It took me nine month to overcome my previous bust and it wasn't easy. I avoided work and school while staying up at night doing random stuff to distract myself. I still read the financial news and charts from time to time, but I was so frustrated with the market.
I came by a trader named 'sol' in the trading blogsphere, which had much interesting experience to share during the 2008 financial crisis. He made a total of 17 million dollars from 200k throughout the downturn. While I never knew him in person, he was a trader I looked up to. He was really good at trading. I tried everything to learn his ways of charting and technical analysis.
Why did I follow this guy? His calls were amazing man! Have you gotten that feeling from someone you follow before? His called tops and bottoms on the /ES within 2-3 points of accuracy. He had a "godly" indicator called the flux capacitor and it worked like a miracle. When a person has that kind precision with technical tools in addition to the enticing idea of getting rich quick, the very foundation of risk understanding quickly vanishes. If I were to describe to you what that feels like, it’s like that one gambling scene by Zach Galifianakis from the movie The Hangover. “You are not gambling if you know you are going to win.”
During this time, I felt the need to follow someone who is more experienced in trading to show me the magic formula; an indicator like sol’s. I joined many traders’ premium services which ranged from 50 to 400 dollars a month; I can tell you the subscription’s quality has very little to do with its price. After discovering much of what technical analysis has to offer, I come to realize that most of my unprofitable trades aren’t because my TA tools failed me, but the fact that I wasn’t disciplined enough, I didn’t follow my rules. Even though my indicator’s backtests all turned out positive, I lost money instead.
Discipline? It’s a bitch to be consistent over time. Force yourself to do things, force yourself to get out of bed, force yourself to admit you are wrong, and force yourself to cut loss. In normal professions, perseverance and unwillingness to give up is the first step to achieving success. That is not the case with trading, flexibility and willingness to alter your view are absolutely necessary.
After so many failed trades and busts, I come to realize that the only thing stopping me from being profitable is to understand my emotional self. How do you practice discipline? Follow instructions below and be blessed by the bitcoin gods: Follow Me On Twitter! If people are interested, I’ll write a few tips that worked for me.
So what do you guys think? Leave a comment below. My English isn’t great, but I hope the point I am trying to convey make sense. The site is ad and promo free and I intend to keep it that way. If you find my blog helpful, consider supporting the site by creating a new account with my referral at bitfinex or okcoin.