Last Friday concluded the last trading day of 2017, the market has been okay to me for the short month that I traded in it
I learnt lessons by losing money from stupid impulsive mistakes, but I made money from stupid impulsive moves also haha
I admit I am not a very good trader for now, but one thing I will say I am very good at is cutting losses
The law of probability dictates that if I work hard and keep planning trade according to my criteria, I will score a home run one day, til then I have to keep my losses small while moving up the learning curve
There will be many times that the market move up and your stocks stay sideway, in this time you will doubt yourself
However, it is never who run the fastest in the stock market, is about who run the longest
By taking trading as a business, as long as my performance meets my goal, I don't care what other stocks are doing
For me, a 3 to 4% per month of compounding will give me 40 to 60% or return per year
That is already better than most people
And by being consistent in putting in money into my trading business, I can definitely be able to trade for a living in a few years, and retire at the age of 40 with a considerable amount of fortune
Of course for now I will not think about the fact that I can't keep compounding my return in stock market alone, given that my fund size will get too big at one point
Nuf said, let's look at the return this year
I am willing to share for this year, and maybe next year as well because my fund size is so small there is not really much secret
My biggest and most expensive mistakes came from speculating Aemulus, despite it forming a super bearish pattern, is a good lesson, no problem
And my most profitable trades all came from momentum play, which are not good at all, but let's see how the next trade turns out
I am using money-weighted return to calculate my fund's return to account for the withdrawals and deposits that take place recently
If I have a better idea how to compute it I may change in the future
For now I think this way measure my performance more accurately
In the first period I am lucky enough to score a 15.89% return
Unfortunately it suffers a -4.36% plunge in period 2 after a huge deposits
I am hoping next year will be a good year ahead as my fund is going to get more deposits from shareholders and also I am working on weekend to ensure everything is alright
Using money weighted return, my annual return becomes 10.83%, as the big loss happen when my fund size increased, and the big gains happen before the size increased
Most probably I won't include this in my CAGR calculation, maybe I consider it as a warm up
2018. my first trading year, will be an general election year let's see how it turns out
Probably in another post I will talk about my financial plan
I learnt lessons by losing money from stupid impulsive mistakes, but I made money from stupid impulsive moves also haha
I admit I am not a very good trader for now, but one thing I will say I am very good at is cutting losses
The law of probability dictates that if I work hard and keep planning trade according to my criteria, I will score a home run one day, til then I have to keep my losses small while moving up the learning curve
There will be many times that the market move up and your stocks stay sideway, in this time you will doubt yourself
However, it is never who run the fastest in the stock market, is about who run the longest
By taking trading as a business, as long as my performance meets my goal, I don't care what other stocks are doing
For me, a 3 to 4% per month of compounding will give me 40 to 60% or return per year
That is already better than most people
And by being consistent in putting in money into my trading business, I can definitely be able to trade for a living in a few years, and retire at the age of 40 with a considerable amount of fortune
Of course for now I will not think about the fact that I can't keep compounding my return in stock market alone, given that my fund size will get too big at one point
Nuf said, let's look at the return this year
I am willing to share for this year, and maybe next year as well because my fund size is so small there is not really much secret
My biggest and most expensive mistakes came from speculating Aemulus, despite it forming a super bearish pattern, is a good lesson, no problem
And my most profitable trades all came from momentum play, which are not good at all, but let's see how the next trade turns out
If I have a better idea how to compute it I may change in the future
For now I think this way measure my performance more accurately
In the first period I am lucky enough to score a 15.89% return
Unfortunately it suffers a -4.36% plunge in period 2 after a huge deposits
I am hoping next year will be a good year ahead as my fund is going to get more deposits from shareholders and also I am working on weekend to ensure everything is alright
Using money weighted return, my annual return becomes 10.83%, as the big loss happen when my fund size increased, and the big gains happen before the size increased
Most probably I won't include this in my CAGR calculation, maybe I consider it as a warm up
2018. my first trading year, will be an general election year let's see how it turns out
Probably in another post I will talk about my financial plan
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