Tuesday, April 14, 2009

Goals, and Current Reading List

I have a few goals:

1/ To create a systematic trading hypothesis, or a framework in which I can create trades within the stockmarket, concentrating on the ASX200 index and the AUD/US forex. The main areas of research that will assist my hypothesis for trades will include macro analysis (my key strength), technical analysis (pattern recognition), trend identification (trend or range), entry/exit points and risk management.

2/ Do a few paper trades before trading, and when I start trading, risk no more than 5% per trade.

3/ Keep myself in mental and physical flow through vigorous trade preparation, and a healthy lifestyle. Substances that may distract my intellectual capacity and phsyical performance I will eliminate until this project is over: i.e no drinking, drugs

4/ Keeping distracting and leisure activities to under 2 hours a day (video games, tv shows- my achilles)

5/ Read A book every night, even if it's skimming the points and reading key areas of interest.

Currently completed books that have helped my prep have been

Anthony Robbins, Awaken the Giant: Probably the greatest motivator alive right now. Hasn't gotten me to where I want to be, but has helped me make that first step.

Napoleon Hill, Think and Grow Rich: Good for motivation and transforming my goals into actionable events.

Brett Steenbarger, Psychology of Trading: Mentally preparing for the long road journey ahead - the key concept being, it won't be easy.

Robert Slator, Soros: I think I would like to emulate the style of Soros trading.

Lessons from Miracle Doctors, Jon Barron: To help with my health issues and optimise my physical performance.

Powerful Sleep by Postawski: to maximise the efficiency of my sleeping patters as I tend to oversleep and waste too much of the day.

I have yet to immerse myself with technical analysis; as I have a background in this area already - but I'm currently reading John J Murphy, Tech Analysis of the Market - supposedly he is the grandaddy of all chartists, so I believe it's a good place to start.