As one of his avid follower, I’ve been re-reading his blog from time to time just to let the lessons really sink in. I took some of my favorite post which I found very valuable for me to help me further develop my performance. Just sharing my favorite posts from one of the most admirable ZFT trader, Sirius Lee.
Soul Searching (finding your trading profile)
It’s true that after you’ve accomplished your “soul-searching” in the market, you will have accelerated progress. Back in 2015-2016, I was still trying to find what kind of trader I am, then 2017 came, all the data I gathered for almost 2 years gave me the insight of what style I should stick to. I knew before that I probably will be a momentum trader but its different when you have data to back it up because it’s probably not a good idea to trust your instinct alone.
Excerpt of last night’s convo w/ Tinnitus:
Find who you really are as a trader and accept its strong and weak points!
When you’re having a winning streak, you tend to overbet and at times, disregard a few rules. This is what I learned from my behavior when trading. Sometimes I end up at breakeven or at a loss. We were reminded by our mentors that you don’t need to trade every moving stock, we just have to find the stocks that could give us decent rewards, with less stress, easy to analyze that might give us our quota for the month then we can pause, take a breather, rinse, and repeat. Not only it is healthy for the portfolio but also on our mental state.
In light with this lesson, I follow my 10% port quota per month. After I hit this, and see other potential plays, either I enter with minimal allocation or just watch. Sometimes I have added gains, sometimes it lessens but what’s important is you religuously follow your rules.
Why don’t you try it out? It might not be the fastest way to grow your port but at least you have a clear cut objective and not just trade blindly hoping for that 100% gain in just a few trades.
Trust me, it’s easy to say but hard to do. Think of this as discipline training.
Are you the type of trader that can’t seem to pull the trigger because you’re afraid to lose? If you are, then you might be showing signs of having loss aversion.
- Always define your trade objective, follow that objective, and don’t change it (if you keep changing your objective, you will get confused, you will overanalyze, and you probably might blame yourself for not sticking to your original plan).
- Stick to uptrends. Yes, they might not have 100% hit rate but if you manage your risk properly and have rules that you follow then chances are your net gains on your winning trades will outweight your losing trades. Angkas lng ng angkas 🙂
- Avoid Sideways/Downtrending stocks—most basic tip. xD
- Personally, if I see 2-3 Bullish signs on a stock, I just wait for the trigger then buy. Don’t overcomplicate things, hindi ka talaga makakaexecute ng trade nyan or makapag execute ka nga kaso late na. xD
Unlocked: Fulltime trading
It started when I read Zee’s blog last January 09, 2015. Curiousity got me and realized that of all the things that I’ve read in the internet about trading, that his is the most sensible one. I got in the program and finished the formal course. I dreamt of freedom just as many others did. This came at a cost and certain sacrifices were made. The thought of delayed gratification is what kept me going. A little over a year later, it paid off. I quit my job, transitioned to full time trading, and now living a simple life.
The thought of leaving a regular-paying job scared me out of my wits. The market is full of uncertainty and randomness but I recognize the risk of this decision and at the same time the potential it offers. That’s why it was best to stay objective, consistent in meeting your targets, and focus on high probability set-ups. This is what I’ve been taught, this is what I’ve been following until now, and that is why I was able to shift careers. This time, to the career that I love doing w/o getting burned out even if I spend hours and hours just looking at my computer screen. This goes to show that the actual will to take, is often the only thing that’s necessary. If you really want something, you can figure out how to make it happen.
When you dedicate yourself to be a full-time trader, you enter a world of 100% accountability. Nobody is making you get out of bed every morning and no one is telling you what to do all day. You are the driver of your own income and you are the only one who cares enough to generate it. But like all careers, you have to be keen and work hard to be successful. Money isn’t just going to fall into your lap because you decided to become a trader. If you have the wrong expectations and aren’t willing to work hard at it, you’ll have problems.
For a person that only has market experience of almost 2 years, until now its hard for me to conceive that I actually let go of the corporate routine that I had, it’s completely different on how I usually operate daily. Now I have more focus, concentration and there’s more time to improve myself. I’m constantly a work in progress and I’m satisfied on what I’ve accomplished, so far. The program has changed things a lot for me. To those that had gotten in, if you’re currently stuck in a rough patch, don’t quit; keep on studying, documenting, and monitoring to find out what areas needs improvement. We’ve all had been there even our mentors. I read this somewhere and somehow was able to relate”One’s overall well-being appears to be related to the proportion of time and effort devoted to activity with a distinct purpose.”
I won’t forget to mention my mentors Zeefreaks & Kidlat for being most influential figures that showed me and my batchmates (Astra) another way. Their guidance has opened many doors of opportunity for the tribe. May we expand and see our dreams to reality. A heartfelt Thank you is in order.
I’ll leave this article with tips from the wise:
No work, no traffic, & no deadlines…
Fulltime, where the real journey begins.
Thank you all for reading, wish me luck. 🙂
The wonders of the ZF system is that you could actually learn and choose what kind of trader you want to be based on your schedule, personality, and preference (See types below).
Day trading – Attempts to profit from the market within the day, leaving no positions open when the market closes, and does not leave positions overnight.
Swing Trading – Attempts to profit from the market holding stocks within at least 2 days to a week.
Position Trading – Attempts to profit from the market holding stocks within a couple of weeks or months.
After much thought, I was leaning towards Day trading / Swing trading since patience is not one of my strong suits. After all, who doesn’t want quick gains, right?
Take note that when day trading, I’m very strict on my volume. I need to get in and out of the trade without much worry on liquidity so I could reap the rewards right away. Hence, I risk only about 10%-30% of my equity, more often than not, I set Target prices / GTC and my trade objective is clear, sell on resistance or first sign of weakness. It’s why most of the time I get ‘iwan’ on certain stocks after selling since I don’t put stops.
Now, there are times when I had consecutive wins, Superman Syndrome kicks in; feeling good about myself and break some of the rules. That’s where all the hard work/analysis, previous gains goes down the drain as I increase my volume and the trades goes south.
BANG! Cutloss in less than 10mins. I end up at break even and sometimes at a loss. When this happens I calm myself down, watch a movie, play basketball, read motivational quotes, probably play video games, accept, and move on (a better option though is to ask Robert Sy and Kidlat Santelmo some of their stashed chick pics or just backread their naughty convos. :3). That’s just how Ms. Market humbles traders.
These are the my common struggles when I activate my day/swing trading mode:
- More opportunities of over trading since you just might get enticed in trading every moving stock.
- Since good trades typically yield only 1:1 risk to reward or less, one loss can deplete the gains of several successful trades.
- Emotional Roller Coaster due to snappy decision making.
- Prone to whipsaws / chasing since you bank on momentum.
- Spending a lot on commissions and trading costs.
I’m still in a gradual transition from swing to trend following since that’s usually where the big money comes in and most of the time, that’s how my mentors Zeefreaks/Kidlat make a killing.
See more from his blog here:
Even if I don’t know him personally, he has been a good person to talk to and never fails to answer my questions without hesitation even when I wasn’t in the tribe yet. Goodluck for those who will get chosen to be Sirius Special Forces (SSF)! I’m pretty sure you’ll we in good hands. 🙂