2024: New Year, New Opportunities
Severe hangovers are often the best time to take life-changing actions.
I have absolutely no idea where the markets are heading in 2024, and I really don’t care. One thing is for sure, though: on a daily basis, humans will behave irrationally in the same way they did in 2023, 2022, 2021 etc, etc, and this will present a mountain of opportunities.
So as we wave goodbye to 2023 and hop on the 2024 rollercoaster, what better time for us to plan and set our trading goals for the year ahead.
I see plenty of Twitter profiles and comments along the lines of ‘Aspiring ASX Trader’ or “Working towards being a Full Time Trader” or “Student of the Market”. That’s a great first step! But the new year is a great time to take a step back and think…am I actually committing to this 100%?
In my relatively short time on FinTwit, I’ve got to admit that my experience has been that most people love to ‘virtue signal’ to themselves and others that they want to be a successful trader (or pretend they are a successful trader), but only a minority seem to be prepared to fully commit to it. It’s definitely not for everyone…you need to embrace the process more than the excitement of the outcome. I’ve spent thousands of hours learning, testing, and reviewing trades over the past 20 years, and I still spend far more time on this than I do actually staring at a live screen.
As I’ve said before, I’m not driving around in Lambo’s or booking out Penthouses on the Strip. However, from my perspective, Day Trading has allowed me complete flexibility and freedom in my day-to-day life, and allowed me to avoid all the major sources that were impacting my overall happiness (Working for someone else, working on something I wasn’t passionate about, no opportunities for long term family travel as tied down with a mortgage etc).
This year we’re taking off on a series of extended stays around the globe, immersing ourselves in some of our favourite cultures in the world. I’m also planning on taking a month in South America, alone (although the wife and kids don’t know about this yet 🤫). This experience wouldn’t be possible in a ‘normal’ job.
So in my opinion, if you’re considering putting more time into this, it’s entirely worth it, and entirely fucking achievable to make it as a day trader, but it takes a lot of commitment.
I can only speak from an Index / Day-Trading perspective, but here’s a few steps I would take to kick off 2024 if you want to make this year, your year:
1. Understand the Basics of CFD & Index Trading: CFD’s are the most functional product to day-trade imo, so before diving in, it's crucial to grasp what CFDs are, and also how indexes and futures operate. Understanding the leverage, risks, and how market fluctuations affect your positions is vital. There are a couple of my past Substack that touch on these and more coming, but the multiple resources on YouTube, Twitter, etc mean you have no excuses in this regard.
2. Get crystal on what type of trader you will be: Swing / Day Trader, Scalper? What products suit you; FX, Crypto, Stocks, Indices? What is your ‘Edge’ in the market; Technical Analysis, Fundamental Analysis, Statistical Analysis, something else? You will not become a profitable trader over time without some type of edge.
3. Choose the Right Broker: Selecting a broker that suits your personal style is essential. Try a few out. Look for one that is reputable, and offers a platform with the tools, resources, and support you need. Compare fees, spreads, and the range of available markets. I’ve used probably 20+ brokers over the years, and currently use two brokers in particular that offer the best all-round packages both in, and out of hours, in my opinion. It’s important that you find a broker that suits YOU, so I won’t promote any specific broker here, but just reach out to me directly if you would like a steer towards the ones I’ve found best.
4. Develop a Solid Trading Plan and Review System: Now is the hard part, developing a daily trading plan based on whatever your ‘Edge’ is, then sticking to it. Keep trading it consistently, and adjust at pre-determined time periods as required. Personally I use my Excel file to determine the day bias, have a set of trading rules which I follow relating to position sizing and entries and exits, and have also used Chat-GPT to translate some general market conditions into code, so I use Visual Studio Code to input the day’s parameters and produce a ‘sanity check’ for my trading plan when the market opens.
In terms of trade reviews, I have a simple P&L Excel workbook, which I complete daily, and a Word document, where I screenshot the charts of the indices I trade and upload, with any applicable comments / notes.
5. Stand on the Shoulders of Giants: There is a way to “Cheat” in all of life’s pursuits, and that is to follow those who have put in the work already. I would have spent more than $20,000 early in my journey on numerous signals services, trading education courses and ‘Guru’s’. The net financial return on these would be a fat negative number, and surprisingly, none of them resulted in me being able to put my feet up and watch the money roll in for the rest of my life. BUT, all of them were important stepping stones on the path to where I am currently, and therefore, very much worth the money in hindsight.
Obviously, I offer a premium subscription if you’re looking to trade indices and are data-inclined. However, I would encourage you to follow people and try services that suit your trading style. Most offer a free trial, or check reviews on places like Trustpilot to ensure you’re not walking into a scam.
If you really feel like you’ve found a person or program which has the resources and knowledge to help you achieve your goals and you’re still not sure about financially committing, I would suggest maybe switching gears and setting a new goal to become a professional insect catcher / dog food taster / snake milker or professional cuddler….as you’re clearly not serious about your current goal.
I have to shake my head when ‘Aspiring Traders’ contact me, excited about the value my statistical analysis can add to their trading outcomes, and then baulk at the $6 / day cost (I’m not even joking).
The ‘Loss Aversion’ mindset is the #1 thing holding people back in this field, imo.
You miss 100% of the shots you don’t take.
5. Practice with a Demo Account: Practice with a demo account for an extended period before risking real money. Many brokers offer these with real market conditions. It's an excellent way to get familiar with the platform, test your trading plan, and understand the emotional experience of trading without financial risk.
6. Be Part of The Community: Join Discords or forums, reach out to other traders (particularly in your city) and arrange meetups. In my experience, most are going through / have gone through all the same challenges as you’re going through and are happy to help. Pick apart the strategies and qualities you’re lacking from speaking with a variety of traders, whether they be earlier, or further along in the journey than you are.
So, they’re the first few steps I would take to have an impactful 2024. Once you’ve got the basics going, the real mastery begins: controlling your emotions and maintaining trading discipline to drive real returns.
Cheers
Marto