A TRADER’S JOURNEY

https://tusgaltchanar.wordpress.com/2025/08/13/a-traders-journey/

Exactly fifteen years ago, I took my first step into the world of trading. I was a young guy, low on cash but full of ambition, and I decided to open a brokerage account to buy my first stock. Back then, our country had been transitioning to a market economy for about a decade, following an open economic policy and a shift toward a capitalist system. Most people knew about banks, but there was a lack of knowledge about financial markets. That was a whole different world we barely understood.

At that time, the privatization of state-owned assets had been underway for quite a while. Unfortunately, instead of selling these assets’ shares through the stock exchange, they often ended up in the hands of cunning, well-connected individuals—some even resorting to shady or outright illegal tactics. These people and their families became the new owners of these valuable assets, leaving the public with nothing. The whole point of privatization was lost, and as the saying goes, “If you carry rice down the wrong path, you’ll return with nothing but dirt!” Even twenty years later, things haven’t improved much. But anyway, that’s a story for another day—let’s get back to my journey.

When I started trading, the process was far from smooth. To buy or sell a stock, you had to call your broker or visit their office in person to place an order. Then, to check if the order was executed, you had need to call or visit again. Brokers did not have multiple phone lines like a customer service hotlink, so getting through was a struggle. I made countless phone calls every day, trying to place as many orders as possible. This meant doing a lot of planning, note-taking, and calculations beforehand. I kept detailed personal records, and thankfully, the era of paper and pencils was behind us. I was already using the legendary Excel to create spreadsheets for my trading notes.

Even now, Excel remains my trusty, beloved tool. If you could not get through by phone or in person, you had have to wait days to confirm whether your trades went through. I tracked my positions and calculated profits or losses myself because there wasn’t a dedicated platform to manage a trader’s portfolio back then. The internet existed to some extent, but brokerage firms weren’t online yet, and the legal framework for online trading wasn’t in place either. They were still preparing for that transition. Despite the challenges, I didn’t give up. I decided to take matters into my own hands and signed up with “Interactive Brokers” to trade on international markets.

Registering was a hassle—nobody was there to guide me, so I turned to YouTube tutorials to figure it out. But there were more hurdles: our country’s postal system wasn’t well-developed, so I didn’t even have a proper mailing address. I managed to use someone ease’s address, but then I needed a taxpayer identification number, either from the U.S. or my own country. I had neither. Our tax system was not advanced enough to assign every individual an official tax ID, and even though I paid social security contributions monthly, that number wasn’t accepted for registration. After overcoming all these obstacles, I learned that the minimum deposit to start trading was around 500 USD—at least, that’s what I recall.

Nowadays, you can start with as little as 50 USD. There were other platforms, but most required an initial investment of at least 10,000 USD, which was way out of my reach. Given my situation, Interactive Brokers (IBKR) was the best and really the only viable option. Even today, it’s still my favorite trading platform. After about a week of relentless effort, my account was finally approved, and I needed to make my first deposit to activate it. Back then, everything was new to me—even signing documents online felt like a novelty. Luckily, our country’s banking system was developing rapidly, on par with many advanced Asian nations, so I could fund my account directly without much trouble.

Think even today, it’s not exactly easy for individuals to directly register with international brokers. A few major brokerage firms in our country have secured the rights to partner with Interactive Brokers (IBKR) and register local clients. But it’s not uncommon to hear about accounts being shut down due to some issue or another. Since I registered independently, I did not have to worry about that. There is nothing quite like the joy of being independent and free from such concerns. By the way, it is still surprising that can’t fully set up a PayPal account in our country.

The U.S, which has always championed democracy and free markets, seems oddly rigid and unaccommodating in this regard. As an ordinary citizen, how could I possibly understand why? For example, in today’s world, you can download any app in seconds, sign up freely, and use it without hassle. Yet, to register for PayPal, you still need a phone number from another country or to living abroad. Otherwise, your account won’t be fully activated. Anyway, let’s move on. The first time I tried online trading, it felt absolutely thrilling—words can’t do it justice. Comparing that to the situation in our country, I couldn’t help but wonder when we’d have a system where we could trade independently, see our profits and losses clearly, and manage everything on a single platform. A bit of envy crept in, I won’t lie.

“My First Trade“

I’ll never forget it. I had 500 USD, and I knew I had to buy the “right” stocks. I also knew not to put all my money into one stock and that diversification was key. Those were the only two rules I had as a complete beginner, diving headfirst into the vast ocean of international stocks without any protective gear or tools. I bought 4-5 different stocks right away. Did I know about trading fees? What about taxes and fee? When to buy? Were the stocks overpriced? What did these companies even do, how profitable were they, or how concentrated was their stock ownership? How active was the trading volume? When should I sell? Was it even the right time to buy? I did not know about strategies like dollar-cost averaging or even something as basic as quarterly earnings reports. How did stock prices move during those periods? Did the companies pay dividends, and if so, how much? What was the ex-dividend date? Did they report to all shareholders? I had no clue about active trading hours either. Ignoring all these question marks, I boldly thought, “I’m going to trade!” Looking back on that ambitious, carefree young version of myself, it feels pretty great.

But there was one thing I knew for sure: even if I lost everything, it would not be the end of the world. I was ready to treat losses as part of the learning process. If I lost, I had figure out a way to earn it back. I had nothing to regret yet. The worst-case scenario was clear: I had lose it all. The best case? I had learn to make profits—and I would make them. I firmly believed that “it’s better to try and stumble than to lecture about theories you’ve never tested.” I also knew that “listening to others and sitting there in awe is less valuable than starting something yourself, even if you end up shocked by the outcome—it’s experience.” That’s still my philosophy today. If you keep doubting yourself with “Can I do this?” you will never take a single step forward. You’ll just stay stuck. But if you say, “I can do this!” and keep trying, even slowly, you’ll leap far beyond where you started. People who ask, “Can I do this?” are programmed to stay in that mindset, and success or luck always seems to slip away from them. They rarely achieve anything remarkable.

Instead of asking, “Can I do this?” the right question is, “How can I do this?” That question sets your brain to work, searching for solutions. It leads to action, even if it’s imperfect. I’m a lazy person by nature, but once I set my mind to something, I stick with it until it’s done. The results may vary, but they’re always better than doing nothing at all. That’s exactly how I approached my first trade. With just 500 USD, I bought shares in four companies and sat back. My thought was simple: “I’ve bought them now, so one day I’ll sell them.” For some reason, I wasn’t too scared of losing it all. Instead, I felt proud—proud that I’d independently set up an account, funded it, and bought stocks without relying on any broker. That alone made me so happy. All that was left was to wait for the stock prices to rise.

Compared to today’s world—where you can check stock prices by the minute, get instant notifications on your phone, and receive real-time news and data about companies—those days felt almost like the Middle Ages. I was just waiting for my 500 USD to grow, convinced that it had to rise eventually. That was the faith I had when I made the purchase. I figured I’d wait six months at most. If I could turn 500 USD into 600 USD, I’d consider that my first success. So, what happened next? Just two months after my first trade, 40% of the value of my stocks had completely vanished. Two of the companies’ stock prices didn’t budge at all. Everything started to feel pointless. Driven by fear, I sold off all the stocks except for the two that hadn’t moved. I thought, “If they drop further, I’ll buy again,” and just let it go. Six months later, exactly half of my initial investment was gone. That was my first harsh lesson and a tough homework assignment. If it were someone else, they might have given up right there.

But not me—I didn’t quit. I was crushed, and like anyone who’s taken a hit, I was angry. I created new habits for myself. Add two more zeros after the lost amount.. When you think about it that way, it feels gut-wrenching, no matter who you are. Truthfully, I only fully realized later that there’s no such thing as “small money” in stock trading. For me, even with a small amount, I’d always imagine adding two zeros to the loss, and that habit has stuck with me to this day. The advantage of this mindset is that it really keeps you from wasting money carelessly. It also helps you make smarter, more calculated choices. So, I …

To be continued in the next issue…