The only future points I'm thinking about are the next trade, and February of 2022. Short term, its trying to make 200-500 a day this month. Next year, that's when I reevaluate how much more money I move from the business to me.
Its not good money management for me to have six months' working capital sitting in the business account. The business is paid off. I've had more than one CPA tell me because of my C corp structure, if I pull the money out, I will be taxed 15%. So he feels the best thing to do is to loan the money from the business and then pay it back.
I don't think I'll need the business when I have one million to trade with, along with my other investments I have. And that's doable, given I've had months of netting 40k multiple times this year in it.
End of the day, most business owners pull out every penny. I'm 50 now, and I've put every penny I had into the company to make it better and reduce costs. When I was a Business Consultant in my other life, most business owners kept so little cash in their companies you wonder how they kept the lights on. We've done the opposite, but at age 50, I have to start pulling money out and making it work.
I killed my 401k to do the business in my 30s, and would have had 500k sitting in it by now. That money (and more) has to come out. Between the six months of working capital and a 200k settlement on the way (long story), eventually that's coming out in the next year or two and into my trading account. And then I'll let my trading account build on its own, and move retained earnings out.
Long story short, I'll be working up to trading 500k soon, as long as I can prove to myself I can be consistent. The ability to make trading profits doesn't come from your computer, it comes from your brain. 80% of the time when I'm losing, its me breaking my trading system and my rules. I look at my logs since February, my losses came from:
1- I was too slow to pull the trigger
2- didn't wait for confirmation, my mind played tricks on me
3- chased the stock (FOMO)
4- didn't obey the stop loss
Any of those four are what cause me to lose. Its not a market thing, or a trading system thing, its a me thing. When I look at my logs, I've gotten better in all of those. Two times I didn't take the stop. I got crushed on Tesla buying it one day, so I held it. The next day, it roared back at the open double what I lost. And I didn't have a stop loss on JETS, when it fell a few percent, because I thought the market got it wrong. I was right, the market decided covid was over.
Me chasing FOMO is still an issue, often times, I chase a long or short position, can't catch it, keep upping my bid, and then when I catch it, the signal reverses hard. I don't do that as much, I am leery and patient. As long as I avoid those mistakes, I can easily make .35%+ a day on average.
The journey is exciting, as I get to do something new. Business is in harvest mode, this is a new challenge. I get to see what type of trader I am. One that can reach in the market and take money at will, or one that is mediocre. I think I'm the former, but I could be the latter. February 2022 will be a good test, that will be one year of doing it seriously.
Most of what I do is scalping, and last time I've had stretches where I was 92.3% correct. Scalping is my thing. Last time I kept my trades in order and tracked them, 72 of 78 trades were winners.
