A full scholarship

After paying tuition for a time, I entered the next phase of my trading: utter chaos. First, a picture:

Phase 2

I was starting to have some good ideas, but had no rhythm or discipline in my trading. I was all over the place, with no sustainable system to follow. That first spike was rather heady, as it reflected a doubling of my account in a matter of weeks (without using any leverage). But the same practices that led to the spike also led to the subsequent downturn. Another lesson learned.

Toward the end of the phase you’ll see the graph settle down. The spikes and drops smoothed out. But it also settled down, as in pointing down, generating negative returns.

At the end of these tumultuous months, I was back where I started. Or was I? In hindsight, I had learned just as much during this second phase as I had during the first phase of my trading, and this time I had not lost additional money. So school was still in session, but now I had a scholarship.

4 Comments

  1. Rollin
    Dec 6, 2006

    Jay, I’m eager to hear more on this. The way it’s gone so far, I’m thinking I have a better system than you. Of course, my system isn’t really a system, but involves buying shares in three companies and holding for about two years. It’s not elegant (buy low, sell high, what a concept!) but all three have more than doubled (one is working on quadrupling) in that 2 years. Inquiring minds want to know what system you are working out and how it is going…

  2. Jay
    Dec 6, 2006

    About 2 more chapters to go (and I’m currently starting the 5th chapter).

  3. Robert Radke
    Dec 16, 2006

    Hey Jay,

    Remember me…from TNPC about 7 years ago…I was on http://www.ntwrightpage.com/ and 4 clicks later I am reading about your trading experiment(there is a theologia link on that page). I am curious about your trading system…can you reveal a teaser about it or something? I myself have been experimenting with options without much success (but very exciting I might add).

    -Robert Radke

  4. Jay
    Dec 18, 2006

    Hi Robert! I definitely remember you and your family.

    The next chapter of my trading story will begin to reveal my approach, so hang in there!