Last month, a Sydney, Australia-based trader, whose Twitter bio says he has been “consistently buying tops and selling bottoms since 2014,” shared an illustration of what he claims is his trading performance over the past few years.
Let’s just say, the self-deprecating trader has reason to wax laudatory, if his performance claims are accurate:
Mike Bellafiore, co-founder of trading firm SMB Capital, took notice of the chart’s “impressive equity curve” and decided to pick J. Park’s brain about his process. Bellafiore shared the interview on the SMB blog this week. Here are some of the highlights that newbie traders might want to keep in mind:
1. Become a knowledge sponge
“I made some easy money (100% luck), blew up a couple accounts, started over with a $600 account (third time’s a charm) and recently crossed $100,000 in overall profits,” Park said, adding that he has picked up several mentors. “I have learned so much from many different people on Twitter.”
Read:The Twitter accounts you need to follow in 2017.
2. Be prepared to do the leg work
“I worked to support myself financially,” Park said. “I traded or at least watched the market action from 9:30 a.m. to 4 p.m. and did the required work outside of market hours in order to improve (which in the beginning, I didn’t even know how to do).”
3. Don’t give up
“I’ve had to deal with the same obstacles most small retail traders face when starting out. Inadequate guidance, small account, high commissions, lack of borrows, you name it,” Park said. “I think I’ve been successful because I didn’t use these ‘obstacles’ as an excuse for why I couldn’t make it and put in the necessary time and effort in order to succeed.”
4. Grade yourself against others
“I started posting my daily P&L on Twitter in mid-2016 as a way to objectively document my progress and connect with traders who may be at a similar level,” Park said. “I believe this has helped me progress tremendously and would like to continue learning from traders of all different skill levels.”
5. Avoid two key mistakes
Park says he believes that there are two issues commonly plaguing the inexperienced trader:
1) They focus too much on profits and losses and not enough on the process. “If your strategy has shown edge over time, the only thing you need to worry about is the consistent execution of your plan and P&L will take care of itself,” he explained.
2) Learn setups that work and make them your own. “Generating your own additional reasons for setups that make sense to you, as well as the criteria for entries and exits are, in my opinion, paramount to developing conviction in your trades,” he said.
View more information: https://www.marketwatch.com/story/5-insights-from-a-retail-trader-who-claims-he-parlayed-600-into-100000-2017-03-14