This is a little story of how I started my trading career.
It was back in late 2008 and like many I had become interested in the stock market during the crash, I had always thought about trading shares but I didn’t have a computer. So one day I was in town and just decided there and then that I would buy a laptop. So I headed for the first electronics shop and basically bought the first one I saw and it was one of the cheaper ones.
I got it home and a week later got my internet installed. One of the very first searches was “online share trading” at that point I did not even know if I could trade online, but the answer was “oh yes I can”!! So I played around for a day looking for a broker and I opened a share dealing account. I had absolutely no idea what I was doing, all I knew is that I wanted to trade. So with virtually no knowledge at all I bought Lloyds banking group at 48p a share! I can remember that it did nothing for about 2 days and then one morning I looked at my computer and bang 55p a share! The excitement was unbelievable! I sat the whole day watching it, but near the close I experienced my first market dilemma, it was at 62p and it started falling. What should I do? After a bit of a panic I exited at 58 I think, I’d made about 20% in one day.
The next day I had another trade, it was roaring higher and I just couldn’t be left out, I bought again at 64 I think and it immediately started to drop. Now I had a big panic on and I got so scared that I exited at 61 for a loss.
Then I realised I didn’t know what I was doing, I bought a few books and discovered candlestick charting. Now I thought I was ready! but I realised I didn’t really have enough money for share trading, that’s when I discovered leverage and got myself a spread betting account. Now I was in business I could day trade all day long, buy/sell, buy/sell.
Over the next week or so I also discovered level2, and had subscribed to that as well, not only for the UK but for the US as well! So there I was living in middle of nowhere, with a level2, NYSE order book at my disposal. I was watching every market under the sun!
But my poor laptop could not cope with all this charting and level2 screens, I had to get another one. I went out and bought an upper range PC and set it up as well now I had two screens and all the charting power I could ever want. I soon added a third screen! This was so much fun and so cool, I was like a dog with two tails!
But as the weeks went on things weren’t going to plan, I was paying a small fortune for all this level2, streaming quotes and not to mention 2 computers! The months past and the countless hours spent reading books and studying charts was all to no avail. Eventually I blew out 2 spread betting accounts and a forex account.
So there it is, I really was a boy with all my toys! And I had every toy under the sun, but it’s all useless unless you learn how to trade, have a solid trading plan and understand your emotions .
I had all the gear, but no idea!