Faceless Bureaucrat: I have, in a very dedicated fashion, been working my way through these DVDs to master the dark art of trading and I confess to enjoying every minute. It really is fascinating stuff. I find I am learning not to invest but to trade (there's a difference) and it's actually called spreadbetting. Now this sounds dodgy to me, I'm not a gambler and I don't like the concept of betting. But as I work my way through the seminars on the DVDs and refer back to my notes from the free seminar it becomes clear that this spreadbetting malarky is just the tool that traders use to make their money. And it's completely tax free (no taxes!).
They also go on a bit about leverage, the technicalities of which are, to be honest, a bit beyond me right now but I get the general gist (it seems to allow you to make money with relatively little in your account) and the important message they keep harping on about is that you never trade to risk more than 1% of your account. This is partly because the downside of leverage is that you can also lose more.
So with an account of £10,000 you never risk more than £100 on any one trade, or with £5,000 account the max on the table is £50. However promising and seductive a particular trade may seem. The word Discipline keeps recurring, apparently it is a crucial quality for traders if they are to succeed.
Now Faceless Bureaucrat perks up at this point. Discipline! Aha! We know all about that in the public service, like keeping our mouths shut in the run up to elections when we'd love to spill the beans on why certain policies are crap and promises hollow. We've grown good - too good - at obeying orders from the high command in recent years and forcibly disengaging our brains in order to do so. I reckon I can handle a bit of discipline....
I learn that we must always "trade with the trend" and to determine the trend we follow the Two Year Old Rule. This means if you ask a Two Year Old which way that line is going and they are able to say "up" then the trend is up. This beats hands down something called "analysis paralysis" where you mull over the lines for ages before coming to the same conclusion. Sounds good to me.
And these chaps have the right attitude. They say that the market is like a woman, always right. And it's not our job to fight her but to learn how to make her happy. We mustn't get paranoid if she seems to be contrary and we mustn't take it personally, it's just the way she is. Emotions must be kept in check. Once again Bureaucrat feels this may play to our well honed strengths - we faceless types don't do emotions.
And another nugget from the lessons - to succeed I must make a plan and stick to it, with every single trade. Well! As a Faceless Bureaucrat why would I want to do anything else? We are simply born to develop and deliver plans, it's what we do best. Suddenly, trading seems the obvious next step in my career and I just can't wait. Another romp through these DVDs before embarking on this 2 day course imminently to properly learn to trade and to Do Discipline. Big time.
Wednesday 29 September 2010
Sunday 26 September 2010
On learning to Think Differently About Money
Faceless bureaucrat: Having immersed myself in these rather impressive DVDs on trading given to me a the free seminar I understand that I must first of all learn to Think Differently About Money. Particularly this popular concept that to earn more money we have to work longer hours or work harder. In trading it seems the opposite can apply, which sounds mighty attractive to the likes of me. I may be a bureaucrat but I like my play time.
From what I can grasp the obstacle for many new traders, particularly those trading their own account like me, is that they find it very difficult to lose money (no!). So when they inevitably do lose a trade this changes their approach to trading preventing them operating consistently and objectively which is vital for successful trading.
I start to see the message, you have to lose some money to be in the game, so to speak. It's like your stake on the table. I think I will try to look at it as one trader suggested to me - an investment in my trading education. Each time I lose a trade - and I am told I will most definitely lose trades, however fantastic I might be - I must explain it to myself as a learning opportunity, to reflect on how I may improve my trading or just to reflect on the randomness that is trading.
Craig - our tutor at the seminar - had confessed, rather charmingly I felt, that even he has "draw down" months occasionally. I wasn't sure whether I should feel comforted or alarmed by this so I suspended all feeling at that point and just marvelled at his steely nerve. This is something I need to work on as we faceless bureaucrats are not known for our steely nerves, it is why we are faceless.
So I am now working on this different approach to money. Part of the understanding is going back to our childhood and the things we were told about money in order to relearn our attitude.
One trader at the seminar told me that his Mum had repeatedly told him "I'm not made of money" so when it came to choosing a career he decided to find whatever was made of money and stick to it. Someone introduced him to the Foreign Exchange (or Forex for the sexy name), he realised that here was something made of money and has never looked back. He says he now fishes money out of this pool of 3 trillion (or so) dollars for a living. I am so tempted.
It all feels rather exciting and I rather warm to this concept that to trade we have to understand ourselves better, this could be a personal growth opportunity for me. I'm up for personal growth as long as it doesn't involve elasticated waistbands.
The NHS hasn't offered much by way of personal growth recently, in fact it's felt more like personal decay, particularly since about 2002/03 when obeying orders from on high really became the name of the game. I'm still waiting for this to change - anyone out there in NHS land who has found the turning point yet? I live in hope.
And the latest on my own possible redundancy/MARS opportunity.... I have reread the small print on MARS and found a horrible clause which has rendered it worse than useless for me. The ear I have pinned to the ground tells me that this is common amongst my faceless peers and that no-one is very interested in taking to MARS. Word is that they're telling their managers "You can stick Mars up Uranus". A spirited response I think.
But I rather like my manger who is from The North and has a great sense of humour so I just smile and shake my head at the Severance Payment option when it comes up in our mandatory one to one meeting To Discuss The Implications of The White Paper (diktat said it must be had by the end of Sept and we have all been "performance managed" on this important task).
Redundancy could instead loom but the latest for our team is a temporary reprieve. This is down to the fantastic political skills of She From The North. She has done fancy footwork with various managers more powerful than we which may or may not have involved intimate contact.
We now definitely have until April and may even go on a bit longer depending on how much pressure is put down from On High. Oh the joys of one's livelihood being at the whim of the politicos. This does now involve Thinking Differently About Money but perhaps not in the way I really need to right now. That sort of carefree way in which seeing your balance diminish does not phase you.
But still, I have seized control of my future and am nailing my colours firmly to the trading mast and at least I know I have another 6 months of work and income during which to learn my new skill.
Better get back to those DVDs.....
From what I can grasp the obstacle for many new traders, particularly those trading their own account like me, is that they find it very difficult to lose money (no!). So when they inevitably do lose a trade this changes their approach to trading preventing them operating consistently and objectively which is vital for successful trading.
I start to see the message, you have to lose some money to be in the game, so to speak. It's like your stake on the table. I think I will try to look at it as one trader suggested to me - an investment in my trading education. Each time I lose a trade - and I am told I will most definitely lose trades, however fantastic I might be - I must explain it to myself as a learning opportunity, to reflect on how I may improve my trading or just to reflect on the randomness that is trading.
Craig - our tutor at the seminar - had confessed, rather charmingly I felt, that even he has "draw down" months occasionally. I wasn't sure whether I should feel comforted or alarmed by this so I suspended all feeling at that point and just marvelled at his steely nerve. This is something I need to work on as we faceless bureaucrats are not known for our steely nerves, it is why we are faceless.
So I am now working on this different approach to money. Part of the understanding is going back to our childhood and the things we were told about money in order to relearn our attitude.
One trader at the seminar told me that his Mum had repeatedly told him "I'm not made of money" so when it came to choosing a career he decided to find whatever was made of money and stick to it. Someone introduced him to the Foreign Exchange (or Forex for the sexy name), he realised that here was something made of money and has never looked back. He says he now fishes money out of this pool of 3 trillion (or so) dollars for a living. I am so tempted.
It all feels rather exciting and I rather warm to this concept that to trade we have to understand ourselves better, this could be a personal growth opportunity for me. I'm up for personal growth as long as it doesn't involve elasticated waistbands.
The NHS hasn't offered much by way of personal growth recently, in fact it's felt more like personal decay, particularly since about 2002/03 when obeying orders from on high really became the name of the game. I'm still waiting for this to change - anyone out there in NHS land who has found the turning point yet? I live in hope.
And the latest on my own possible redundancy/MARS opportunity.... I have reread the small print on MARS and found a horrible clause which has rendered it worse than useless for me. The ear I have pinned to the ground tells me that this is common amongst my faceless peers and that no-one is very interested in taking to MARS. Word is that they're telling their managers "You can stick Mars up Uranus". A spirited response I think.
But I rather like my manger who is from The North and has a great sense of humour so I just smile and shake my head at the Severance Payment option when it comes up in our mandatory one to one meeting To Discuss The Implications of The White Paper (diktat said it must be had by the end of Sept and we have all been "performance managed" on this important task).
Redundancy could instead loom but the latest for our team is a temporary reprieve. This is down to the fantastic political skills of She From The North. She has done fancy footwork with various managers more powerful than we which may or may not have involved intimate contact.
We now definitely have until April and may even go on a bit longer depending on how much pressure is put down from On High. Oh the joys of one's livelihood being at the whim of the politicos. This does now involve Thinking Differently About Money but perhaps not in the way I really need to right now. That sort of carefree way in which seeing your balance diminish does not phase you.
But still, I have seized control of my future and am nailing my colours firmly to the trading mast and at least I know I have another 6 months of work and income during which to learn my new skill.
Better get back to those DVDs.....
Thursday 16 September 2010
Can NHS managers cut the mustard...and trade?
Faceless Bureaucrat: I get pretty naffed off with the press we get as NHS managers. People seem to labour under the impression that we are robotic half-wits without independence of thought who are capable only of following rules and covering our backs.
So it came as something of a surprise to me to learn at the free seminar that to be a successful trader one must do exactly the same tasks in a repetitive - some might say robotic - way, trade only what one sees ("not what one thinks"), follow rules diligently and always cover one's back...or manage risk as they prefer to call it.
So here I am, having spent 20 years creatively solving complex problems involving multiple vested interest stakeholders to meet pigging government targets, often risking my career to actually get things moving...
But if I am to survive in the wild world of trading I must now reclaim the caution I threw to the wind and get back inside the box. Sharpish.
Apparently trading is 80% psychology and 20% technical skill. I am relieved to hear this as am rather worried about the technical side which involves lines on charts and long numbers but think that years of dodging and diving in the NHS will have my psychology well honed. But is it honed to the right shape for trading? I like to think so but on reflection feel that the traders at the seminar have already got the better of me as despite having promised myself I would commit to nothing at this seminar I left with a pack of DVDs and a weekend booking for a two day intensive course in trading stocks and shares. Fully paid & committed, because they offered a nice discount if we signed on the dotted line right there and then.
What was I saying earlier about half-wits?
I now fluctuate between thinking I've been duped and being madly excited to learn more because, quite frankly, the free seminar was brilliant. My conclusion is - I need help. I know nothing of this but I want to make it happen. I can't do it alone, so in my well honed NHS manager way, I call on the professionals to advise and guide. And actually, these guys seem really professional. Let's hope I'm right.
So it came as something of a surprise to me to learn at the free seminar that to be a successful trader one must do exactly the same tasks in a repetitive - some might say robotic - way, trade only what one sees ("not what one thinks"), follow rules diligently and always cover one's back...or manage risk as they prefer to call it.
So here I am, having spent 20 years creatively solving complex problems involving multiple vested interest stakeholders to meet pigging government targets, often risking my career to actually get things moving...
But if I am to survive in the wild world of trading I must now reclaim the caution I threw to the wind and get back inside the box. Sharpish.
Apparently trading is 80% psychology and 20% technical skill. I am relieved to hear this as am rather worried about the technical side which involves lines on charts and long numbers but think that years of dodging and diving in the NHS will have my psychology well honed. But is it honed to the right shape for trading? I like to think so but on reflection feel that the traders at the seminar have already got the better of me as despite having promised myself I would commit to nothing at this seminar I left with a pack of DVDs and a weekend booking for a two day intensive course in trading stocks and shares. Fully paid & committed, because they offered a nice discount if we signed on the dotted line right there and then.
What was I saying earlier about half-wits?
I now fluctuate between thinking I've been duped and being madly excited to learn more because, quite frankly, the free seminar was brilliant. My conclusion is - I need help. I know nothing of this but I want to make it happen. I can't do it alone, so in my well honed NHS manager way, I call on the professionals to advise and guide. And actually, these guys seem really professional. Let's hope I'm right.
Wednesday 15 September 2010
A Breathless Entry....
Faceless Bureaucrat: Am still recovering my breath after being taken on a journey of discovery by a fit young Australian chap called Craig. About half my age but hey, even Faceless Bureaucrats can appreciate a man who knows his bulls from his bears. And the leverage...well I never...
Suffice to say, I do now understand that bull markets are when things are looking up and bear markets are the opposite. And traders apparently say "When bulls go up the stairs, the bears jump out of the window". I make a mental note to wait until after the bears and take a soft landing. But this little ditty tells you more than that bull markets go up and bear markets down, it also tells you that when the market goes up it generally goes up in relatively slow stages like steps but when it drops it really goes - or "tanks" the traders like to say. So actually you can make money a lot faster in a bear market.
And apparently you can make money from prices going down which seems odd, particularly since you don't actually own the thing that's going down in value, you just borrow it from some obliging chap and sell it whilst he's not looking. Then when the price goes down you buy it back more cheaply and slip it back to the chap before he's noticed. I thought these trading guys were all sharp as Katie Price's nails but clearly some of them are not paying attention.
I learnt so much on my free seminar and am anxious to share more but as the NHS is, at present, still requiring my services I am back on duty to put in the hours I took off for that long and eventful lunch break.
Suffice to say, I do now understand that bull markets are when things are looking up and bear markets are the opposite. And traders apparently say "When bulls go up the stairs, the bears jump out of the window". I make a mental note to wait until after the bears and take a soft landing. But this little ditty tells you more than that bull markets go up and bear markets down, it also tells you that when the market goes up it generally goes up in relatively slow stages like steps but when it drops it really goes - or "tanks" the traders like to say. So actually you can make money a lot faster in a bear market.
And apparently you can make money from prices going down which seems odd, particularly since you don't actually own the thing that's going down in value, you just borrow it from some obliging chap and sell it whilst he's not looking. Then when the price goes down you buy it back more cheaply and slip it back to the chap before he's noticed. I thought these trading guys were all sharp as Katie Price's nails but clearly some of them are not paying attention.
I learnt so much on my free seminar and am anxious to share more but as the NHS is, at present, still requiring my services I am back on duty to put in the hours I took off for that long and eventful lunch break.
Tuesday 14 September 2010
How much can I afford to lose?
Faceless Bureaucrat: A word of advice from my Uncle when I share my plans: "Never trade more than you can afford to lose". Apparently this is Rule #1 of Trading. I'm not really completely sure what that means - I can't afford to lose any money....who can??! Does that mean I can't trade? I think about this long and hard, as we Faceless Bureaucrats are prone to do. And then I resolve to Start Small. If I'm crap then I won't lose much and can put it down to experience. But I don't like the concept of losing, or the horror of seeing money that could usefully be deployed securing shoes or nice dinners out just disappearing into the ether that is The Market. I hope the free seminar I'll be attending shortly will provide more reassurance about this whole issue...
Sunday 12 September 2010
First Step: Find out what it's all about
Faceless Bureaucrat: To say I know nothing about trading is an overstatement. It's got something to do with markets and stocks and shares I believe. I understand they label things with animal names but haven't a clue why...bulls....bears....what's that got to do with the price of bread? I have to find out more before I do anything with my little pot of gold. Faceless bureaucrats like me don't step out into the unknown without a spot of training so I google training in stocks and shares and book myself onto a free 2 hour seminar run by one of the many companies offering such things. This one's soon and its local and they look ok. I promise myself I won't make any rash decisions or spend any money....
Saturday 4 September 2010
Rain Check Before Starting - am I Anti Risk?
Faceless Bureaucrat: As a Faceless Bureaucrat I gravitate towards the safe options. Being in the NHS (National Health Service for readers outside the UK) I've had over 20 years of being contained and institutionalised. Any move made to improve health care goes through numerous layers of hierarchy, at least one of which is likely to take issue with the idea - even if it's on the notion that this means change which equals risk. And we don't do risk.
So why do I think there may be Bad Assed Trader potential within me? Because I feel frustration from that containment. It's not that I want to take risks heedlessly but I'm prepared to manage them. I'd like to reclaim my sense of personal responsibility.
If you're anti risk then I'm not the girl for you. Read no further. But if you have a bit more ooomph, like to make things happen, then maybe you'd like to sit alongside me on this journey. Because it is going to happen.
So why do I think there may be Bad Assed Trader potential within me? Because I feel frustration from that containment. It's not that I want to take risks heedlessly but I'm prepared to manage them. I'd like to reclaim my sense of personal responsibility.
If you're anti risk then I'm not the girl for you. Read no further. But if you have a bit more ooomph, like to make things happen, then maybe you'd like to sit alongside me on this journey. Because it is going to happen.
Friday 3 September 2010
The Beginning
Faceless Bureaucrat: So what do you plan to do with your redundancy, sorry, MARS cheque? Fantasising about the holidays/new car/new consultancy business? Or just early retirement? And your lump sum will earn what percentage interest rate exactly as it gently ebbs away?
Yes, I thought so...but we're NHS managers, we don't think about stuff like that do we? We picked a career to Make a Difference and if it happened to have great job security and actually a pretty good salary, well that was just an added bonus wasn't it? But money isn't what motivates us. We are the Pure Ones - even though everyone else sees us as low life on a par with estate agents and traffic wardens.
But now the Big Wide World beckons. Put down that comfort blanket and get real. You're on your own now. Prepare to enter the Waste Land that once was the Private Sector or think of something better.
Yep, that's exactly what I thought. What is there that's better? And that's when I came across the notion of Trading......
Yes, I thought so...but we're NHS managers, we don't think about stuff like that do we? We picked a career to Make a Difference and if it happened to have great job security and actually a pretty good salary, well that was just an added bonus wasn't it? But money isn't what motivates us. We are the Pure Ones - even though everyone else sees us as low life on a par with estate agents and traffic wardens.
But now the Big Wide World beckons. Put down that comfort blanket and get real. You're on your own now. Prepare to enter the Waste Land that once was the Private Sector or think of something better.
Yep, that's exactly what I thought. What is there that's better? And that's when I came across the notion of Trading......
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