Thursday, June 15, 2006

My Goals

I've been dragging my heels on this long-over-due post. I say that because I've been figuring out exactly what my goals should be for some time. I want my goals to be as complete and specific as possible, yet flexible; aggressive, but realistic. I may be putting too much pressure on myself on this issue. So, here goes...

Short term goals:

  1. To learn, apply, and follow EduTrades, Inc./Teach Me To Trade's methods for chart reading, trade entry and exit guidelines, and structure/type of trade (option play, etc...). I'm not here to re-invent the wheel; my father and I have paid a lot of money to be instructed on TMTT's effective methods of trading and I'm going to do exactly as I'm taught. This is best, in particular for you: the reader of this blog. I don't want to invalidate the results by not following their guidelines. That would ruin why you're reading this blog, wouldn't it?
  2. My first paper trade (virtual trade). Sounds a little silly that I haven't yet, right? I actually have attempted to paper trade a Bear Put Spread, but wanted to ask for a discount off the bid-ask to make the spread cost less than 40% of the expected move (in this case a $5 dollar move, so I wanted the trade to cost me <= $2). The trade was looking great with a 0.58 Net Delta (the in-the-money put buy at 0.69 and the out-of-the-money put sell at 0.11). The expiration was 7.5 months out as the underlying stock was averaging <$1.6> per month, so I gave it 3.5 months for the move and doubled that. The January expiration date looked very nice. Since I wasn't sure how to specify the discount I canceled the order (silly thing to do... now that I think about it). Yesterday the underlying stock had already moved 3/5s the distance and I could have closed the position today -- profitably -- since the stock started to go bullish. But it's more likely that I would keep the position open for a while. I would have had plenty of time left on the option and today wasn't a reversal candlestick. Also, it was still below the 13EMA and hasn't proven that it's found support. But I still need to place that first paper trade. ;-)
  3. Fund my account to execute actual trades. (*gasp*) That probably doesn't seem like big a deal to you, and I know I'm blowing it out of proportion but... WOW! that is kind of a BFD for me. I've never even had a brokerage account before! This leads into my next goal...
  4. To learn my lessons as they come and not get spooked by a couple bad trades. It's really easy to mentally or virtually enter and exit a position, but it's certainly different with actual money. I know I pay way more attention when playing poker for a decent sized pot. Don't you? After all: "That's my money!" say it with me: "That's my money!" ;-) (thank you Lee Dotson!)
  5. To make my credit work better for me. I don't have a great credit situation right now. You may know (from earlier posts) that I've taken some actions to improve my credit score. Doing so should give me some negotiating room to get lower rates because I really don't think I'm a credit risk. Maybe everybody says this, but I assure you that my integrity won't allow for that. Aside from two collections that slipped through the cracks -- and have since been paid -- I don't think I've ever been past due on any money owed.
  6. To make enough Trading to offset the cost of the interest for the education that we've put on credit cards. I hope to negotiate a low interest rate to make that easier to achieve. While, at the same time, being able to pay that debt off as soon as it makes sense financially. If I'm netting more % return Trading with the use of that money, I may not be in such a hurry.

Mid term goals (you know -- like a mid term exam):

  1. Become financially independent. Earn enough Trading (while still being able to grow my account) to pay my bills and have the option to quit my job. At a bare minimum, $4k per month, but my real target is $10k per month and eventually more, as needed.
  2. Take over some of my father's investment accounts to get him better and more consistent returns.
  3. Do what I can to help my friends and family that are interested in Trading* (and I do hope that all of them are interested) to get them to where I will be: financially independent. If that means sending them to TMTT on my tab, so be it. They can return it to me when they become successful Traders*. Plus interest! HA! (no, just kidding about that... or am I?)
  4. Buy a home. Stop renting and get a nice place that accommodates me much better. I need a better kitchen situation to really help improve my life and health. This is very important to me and something that I've neglected for too long. I love food and I do enjoy preparing healthy & tasty dishes!
  5. Find out if laser eye surgery is appropriate for my sister and pay for it as a gift. ... So she can clearly read and learn how to become a Professional Trader* in even less time!!! I think she'd be really good at this, better than me.
  6. Have more free-time. Ideally, I'd have enough available time each day to do some things I enjoy: music, surfing, paragliding, exercising, learning a foreign language (preferrably in a foreign land :-D), etc...
  7. Remain humble, attentive, and adaptive to the market environment. I don't want my ego to cost me money when I'm successful. I want to always remain involved and continue to make smart trades. I also want to keep my skills current and learn to improve my trades to exploit whatever condition the market is giving.

Long term goals:

  1. Have vacation and travel time to see much of the US, often with my parents as well as plenty of travel abroad. Asia, Europe, Australia, ... I could go on and on about specific locations and how much time I'd like to spend and what I'd like to see and do, but I don't want to make you too jealous because you didn't think about that ;-). Maybe, if you ask nicely, I'll share a fantasy trip or two with you.
  2. Be able to sponsor deserving and needy musicians/music groups. I have this crazy notion: I'd like to be able to afford to have (enough of) a semi-pro orchestra's interest under my control (buy that interest via sponsorship/shares/BoD) in order to get my favorite conductor (and friend) a position for others to see that he's worth more than a second look. I'd love to allow him the chance to prove to the world what a fine conductor he is and how improved the orchestra becomes under his direction. I told you it was a crazy notion, didn't I?
  3. Help this world. Respond to what's calling me, what I feel most passionately will do the most good.

Short and to the point, exactly as I intended ;-)

* I am joking about converting everyone into a Professional Trader. There are many people that don't want to have that much responsibility for their own finances. Who do you blame, curse, and begrudge if you're the only one responsible? It certainly can be a lot of pressure: to not have any excuses; especially if accustomed to using them as crutches.


michele said...

Interesting post,here by way of blogger.Stop by for a visit.

Percival said...

All the best to your dreams!