Choosing my poison

Discovering my inner self as a trader was an elusive goal for me ever since. I had a hard time choosing between swing and position trading that I have wasted so much time going nowhere.

It took me time to understand and the reason behind is that there is a part of me that loves to trade more actively even if performance says I’m better at sitting on my conviction trades.

Understanding my self deeper was a challenge, until I decided to just do what I’m good at more often because this would save me from wiping out my account in my formative years in trading.

I have to be practical and that is to focus on my strengths rather than improving my weaknesses.

This doesn’t mean that I’ve dropped swing plays already but rather I need to make my position plays robust enough for it not to be stressful for me.

Here is a summary on how I approach the two.

Swing plays

  • Screening stocks would be everyday or every other day.
  • Extreme focus is needed
  • Managing trades is difficult but will dramatically improve my skills
  • Screen time in monitoring the market is higher
  • Stressful for a full-time employee like me
  • Trades are more often
  • Sleepless nights
  • Tight stops, lesser losses
  • Can be very much rewarding and charting skills are always heightened

TF plays

  • Screening stocks can be weekly
  • Focus is needed only if price hasn’t favored me yet
  • Managing trades are a lot more easier
  • Screen time in monitoring the market is lower, can be done at the opening and closing only
  • Not that stressful for a full-time employee like me
  • Trades are less but more quality
  • I have more sleep
  • Wider stops, bigger losses
  • Rewarding but not as rewarding as a profitable swing trader in my opinion.

The poison of my swing approach for me is my health, having less sleep and being in a mentally stressful condition affects my mood and decisions not only in trading but also in my day to day life. It dramatically improves my technicals though

TF plays are boring but I don’t mean that it’s easy. My poison is the fact that it is boring and my urge to trade actively are burning. Often times before, I would sell a few positions just to swing on a different stock which ruins performance.

So choosing my poison?

Nah, I didn’t choose any. I looked for antidotes.

Antidote #1

Making multiple portfolios solved it for me, one portfolio is for my TF plays and another portfolio is for my swing plays. By doing this I can activate my Swing/TF approach depending on the port that I open.

Antidote #2

Only open the swing port if I have the following week off and I have prepared for it. Focusing more on what works which are TF plays and would only swing if I can.

Antidote #3

Manage risk between the performances of the two approach by putting smaller capital on the swing port(basically I’m not that good on swing). By doing this, my psychological stress of losing is lesser.

Here’s a quick swing last week

And here’s my current TF port doing

Somehow I feel relieved,  I would still be focusing on my TF port and hoping that swinging here and there whenever I can would solve the urge to trade.

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