Saturday, February 26, 2011

My story.....Part 4

Last time, I had left you readers at the point where I had been badly battered and bruised by the markets but was not willing to admit defeat. I read everything I could lay my hands on in search for something that would give me an edge to succeed in trading.  If you have missed the earlier parts of my initial experiences with trading, I highly recommend reading Parts 1, 2 and 3 first before continuing with this post.

I had mentioned at the end of the post last time, that a combination of technical and fundamental analysis seemed to be the way to go forward to me and CANSLIM seemed useful in that regard. I would love to tell you readers that it is all one happy story from now on but that's wasn't the case. My initial experiences with CANSLIM were encouraging but at the end of the first few months of trying my new found knowledge, I was just a little over break even. Clearly, the only person who was benefiting from my trading endeavors was my broker. 

Something wasn't right. Something was clearly missing. I had read a lot, studied a lot and learned a lot but success was still proving illusive. I had tried various technical indicators, browsed through tons of old charts using these indicators but that something was still missing. Looking back, it is quite easy for me to say what the missing ingredient was, but back then, finding the missing part of the puzzle was proving difficult. In case you readers, haven't already guessed it, the missing part of the puzzle was me.

I was trying too hard to find a system that worked and made me consistent profits, searching for answers in books, blogs, basically everywhere except within me. Looking back, my search for that stock pattern that would give me 80% hit rate was bound to fail. Reading even all the books in the world about market strategies and patterns was not going to be useful. But in the end, it was a book only that came to my rescue. But more on that in the next part where I shall try and wrap up this series.

Take care and good luck!

5 comments:

Julia Clara said...

I really like reading your posts about your story!

KnowledgeMC said...

Loving the series, can't wait for Part 5!

DrVanNostrand said...

this is great stuff reading your story reminds me so much of my own trials and tribulations and the endless research i used to do looking for the best patterns the elusive magic moving averages and indicators...its amazing how simple works best in this business the best traders I know use the simplest systems

ppmoore said...

Yes, I agree, great series.
I thinks we have all travelled the same road.

positiontrader said...

Thanks for all the kind words guys! I will try to wrap up the series this weekend.