1. says

    Thanks for sharing. I like point 4 – develop my own rules. It’s no point copying someone’s trading system if it does not fit my trading personality. I have seen so many folks who insist on doing intraday trading when it is not “their cup of tea”.

    • Punit Gupta says

      That is indeed very true.. intra-day trading isn’t for everyone. Similarly one trading style may not work for someone else. So really important to figure out what works for you. Its like any other work you are start out with, you gotta experiment and figure out before you jump all in.

  2. says

    I’ve been guilty of failing at 1-6 on this list in the past. I can tell you that as I started doing my own research and developing my own investing plans, my investing improved. Recently, I’ve been networking with other dividend growth investors via my blogging activities and it’s been a wonderful experience that is helping to improve my investing.

    • says

      Good to hear that your investing improved. Lot of traders out there end up quitting trading altogether after they blow their account and reason mostly is one of the ones I have talked about here.

  3. says

    Item 2 (emotions) are my biggest problem. Often I let my emotions get in the way of being analytical and sometimes make rash decisions. It’s tough to be disciplined!

  4. says

    Well stated. The two worst positions in my portfolio are ones I researched quickly after reading some great “tips” on the stock on the internet. I didn’t follow my normal due diligence process and now I’m paying for it in the pocketbook.

    • Punit Gupta says

      Sorry to hear that. Remember to cut losses after they hit your stop. You dont want to be end up like a bag holder. Some stocks NEVER recover, specially the ones you buy based on some “tip”

  5. says

    I agree with points 1, 3, 4, and 6. Yes, you should not simply follow the tips and theories of so-called experts and advisers. You should also do your own research before making a decision. Bear in mind that change do not happen overnight, so does becoming rich. Hence, you need to be consistent. It is similar to developing a skill. you need to practice it regularly before you become a veteran. Lastly, networking with successful traders will help you learn more about market conditions and trading patterns. Networking with other people in the same profession as yours is also advisable even if you are working in a different industry.

    • Punit Gupta says

      Yup Charleen, thats exactly what matters. If someone can master these points, there is tons of monies to be made here in the market.

  6. says

    Hi Punit, I read your BIO and it says you are a full time trader. I assume you are trading for a living. In that case I would like to ask you a question which is a bit off topic, but I was searching the internet hard and couldn’t find answer.

    I am looking for an accounting/tracking program which I can use to download my data from brokerage account and it can spit out fundamental analysis of my portfolio, add dividends to stocks and offset cost basis as well as handle options trades. In many occasions I use put selling strategy to generate income on a stock I am interested in buying and then use the “free” money to buy the stock (get assigned). Then my cost basis for that stock is totally different from the one my broker shows me, so I have to combine all trades into one lot manually in a spreadsheet. And that is a lot of work.

    Are you aware of anything which can automate my accounting/trades tracking/journal somehow? It can be a paid program, I am fine to buy it.

    • Punit Gupta says

      Hey Martin,

      Sorry for the late reply.. just saw your comment. Can you please email me your requirements? I will see if I can find something like that.


      • says

        Punit, I would love to send you an email, but failed finding it. Would you mind sending me a contact thru my contact form at my website? You can get there thru my name link on this post. Basically I am looking at something which would be capable of downloading my trades from my brokerage account, analyze the portfolio (beta, P/E, profit loss, distributions, dividends, options, and all sort of other metrics which would help to evaluate portfolio) and create some tax reports selecting investments per holding time (short term, long term, etc). Also I am looking at something where I can somehow link my options trades with the underlying and see reduced cost basis, for example when selling covered calls I want profits reduce my cost basis – currently I do it manually in my spreadsheet, etc. Not sure if anything like that exist at all.
        Thanks for your help

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