The Responsible Trader

Responsible Trading is my advocacy and it includes The Responsible Trader’s Creed. I was pre-empted by the one who copied my work. Here’s the original and its meaning:

To simplify my explanations, I have put it in Question and Answer Form:

What is my Advocacy all about?
My advocacy is all about sharing of knowledge and information to guide traders, most especially new traders, in the proper way to start their trading career and how to maintain consistent winning trades to be successful in trading.

The improvement in cutting edge technology and our telecommunications infrastructure have fostered the growth of online stock brokerage firms and made trading a viable alternative to establishing a business and attracted a lot of people to the Philippine stock market. Some are also drawn because of promise of instant jackpots and get-rich-schemes.

Unfortunately, just like myself when I started my trading career, without proper guidance and knowledge they become unknowing prey to stock manipulation and other dirty tricks in the Philippine stock market and they are like a flock of sheep being led to be slaughtered.

How is this accomplished?

For the moment, this is done through “The Responsible Trader” thread I created in Stock Market Pilipinas (www.stockmarketpilipinas.com) where I post videos about basic trading knowledge and through my Ninjanotes where I explore the concepts presented and try to simplify so that readers, even without any prior background or knowledge, would be able to understand and use them immediately in their trading activities.

In addition I have also created the thread My Ninjathoughts, where I share my personal weekly reflections on life in general and trading in particular and the corresponding materials in my Inspirational files to encourage new traders to pursue their trading career in the proper direction.

I am still thinking of other ways of doing this better in the future.

What is Responsible Trading and how did I come up with this idea?

Responsible Trading has four elements: Self Discipline, Continuous Education, Protection of Capital and Full Responsibility.

Just like many of you when I began my trading career, I started with zero knowledge about trading. Even with my knowledge and experience in the corporate world and my academic backgound, it was a hit and miss affair.

I realized that there was a gap in my knowledge base and this led me on a quest to find out what successful traders are doing so I could benchmark my trading career from their best practices. From most of them I gathered the two elements, Continuous Education and Protection of Capital. From my experience, I added the other two – Self Discipline and Full Responsibility.

Putting everything together we now have: RESPONSIBLE TRADING means Practicing Self Discipline, Continuously Educating Yourself, Protecting your Capital at all Times and Taking Full Responsibility for your Trading Results.

Aside from being an Advocacy, does RESPONSIBLE TRADING also have a system?

Yes. Responsible Trading has a complete set of SYSTEM consisting of a Trading Philosophy, Principles, Methods, Strategies, Tactics, Trading Plan and Trading Rules.

However, everything depends upon the Individual. It can be as robust as a Business Plan or as simple as a Trading Plan. Because of my business experience and academic background, my Trading System is almost similar to a Business Plan but in everything I do I am always guided by the Responsible Trader’s  KISS – Keep it Simple and Sustainable.

Can I summarize the RESPONSIBLE TRADING SYSTEM in just a few words?

Yes. I have summarized everything through the RESPONSIBLE TRADER’S CREED and I am going to explain what each paragraph covers.

THE RESPONSIBLE TRADER’S CREED

I am a RESPONSIBLE TRADER
I Practice SELF DISCIPLINE
I Continuously EDUCATE Myself
I PROTECT my Trading CAPITAL at All Times, and
I Take FULL RESPONSIBILITY for my Trading Results.

I NEVER enter a Trade without a Trading Plan
I ALWAYS know where the Trendline Is
I ALWAYS know where the Support and Resistance are
I ALWAYS set my Stop Loss and Target Price
And I OBEY ALL my TRADING RULES at ALL TIMES.

I am a RESPONSIBLE TRADER
Trading without FEAR, Trading Without GREED
Sharing my Knowledge to Traders in Need
One thing I will NEVER TELL
Is what and when to BUY, HOLD or SELL.

ALL these THINGS I DO CONSISTENTLY
Not only FOR ME, but also for MY FAMILY.
So help me GOD.

The first part covers the elements. The second part covers the practical applications. The third part covers the philosophy and the fourth part covers the commitment.

In my next post, I will further discuss my thoughts on my Advocacy (Where do we go from here?)

I wish you all a blessed and happy weekend.