The Market Chronicles: My Stock Trading Journey

Trading in the stock market is not just about buying and selling stocks; it's a continuous journey of learning, adapting, and refining strategies. Through this journal, I will document my daily (Monday to Friday) and weekly (every Sunday) reviews of the U.S. stock market. This will help me stay disciplined, analyse my decisions, and improve my market understanding over time.

The Four Levels of Stock Market Mastery

To succeed in the stock market, mastering different levels of understanding is crucial. This journey progresses from simple pattern recognition to full situational awareness and emotional discipline.

Level 1: The Basics – Mastering Patterns

The first step is getting familiar with technical analysis—candlestick patterns, bull flags, price action, and basic trade setups. At this stage, you are primarily a pattern-based trader, unaware of broader market conditions, trending themes, or high-RS stocks.

Many beginners trade in isolation without considering market sentiment or sector strength. This leads to mixed results as they fail to differentiate between strong and weak stocks. The key lesson at this stage is to transition from simply recognizing setups to understanding why certain setups work better than others.

Level 2: Sector & Thematic Awareness

As you gain experience, you’ll start seeing recurring cycles in the market—sectors and themes rotating in and out of favor. The strongest stocks, those with high RS, consistently appear in scans during bullish cycles.

At this level, you also start analyzing catalysts that drive price movements. A strong stock within a strong sector provides an additional layer of margin of safety.

Layers of Margin of Safety:

  1. High RS Stock: Strongest among its peers.

  2. Sector Strength: Stocks performing well within a leading sector.

Level 3: Situational Awareness

Market conditions dictate how a trade should be executed. Situational awareness means understanding when market sentiment supports a setup and when it doesn't.

Key Takeaways:

  • The more you focus on sector strength, the less the pattern itself matters if you're in a strong stock.

  • The more you focus on situational awareness, the less sector strength and technical patterns matter.

By this stage, you should be able to quickly assess whether a trade aligns with broader market trends and adapt accordingly.

Level 4: Emotional & Mental Discipline

Even with perfect technical skills, trading remains an emotional battle. The harsh reality is that trading sucks when you start—you will lose money initially.

Cognitive biases, particularly loss aversion, play a significant role in decision-making. Studies suggest that people feel the pain of a loss nearly three times more than the joy of an equivalent gain. This psychological imbalance can lead traders to make irrational decisions, such as holding onto losing trades too long or prematurely exiting winners.

The Ultimate Truth:

If you master the first three levels but fail at emotional control, you will eventually quit trading.

So in this blog you may see daily/weekly review. The purpose of this review is to master level 3 i.e situational awareness. Below is a breakdown of what I will cover in these daily reviews.

My Daily Market Review Includes:

  • Overall Market Breadth: Evaluating the general health of the market.

  • Review of Major Indicators: Identifying key market trends and direction.

  • Thematic Plays: Recognizing emerging sector rotations and trends.

  • Strong Stocks Forming Patterns: Spotting stocks that exhibit high relative strength (RS) and bullish setups.

The Path Forward

This journal will serve as a blueprint for my trading evolution. By tracking my daily and weekly market insights, refining my entry and exit strategies, and strengthening my mental game, I aim to become a more consistent and profitable trader.

Stay tuned for regular updates as I navigate the ever-changing stock market landscape!


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