Thursday, December 11, 2008

Due Diligence

I bought SPY when I was 16. It was anti-climactic.

Over the course of the next few years I started trading. For periods of time I had stock in Raytheon, Deere, Google and Apple. My style consisted of news, fundamentals and a lot of hope.

This was from 2006 to mid-2007 so it was hard to lose money.

I began to trade more and understand some basics of technical analysis. I read a lot of bad books and a few good ones. Several months were also spent on a search for a "holy grail" trading system.

In January 2007 I had little understanding options, but began trading them. I learned through experience and losing money. During July of 2008 I began trading currency with 100:1 leverage. I use less now.

I don't think trading can be taught, it's something that is learned through experience and the loss of money.

Trading is about psychology and calculated risk-taking. Fundamentals matter in investing.

I can't do a good job describing my style of trading. Hopefully it will be apparent in the trades.

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