Steven Zhang, aka "docneuro's" story
My nickname in the room is ‘docneuro’.
I have been in the field of neuroscience for over 15 years
specializing in olfactory disorders. Over 10 years ago, while I was
doing research on kinetic properties of neurotransmitter receptors,
I realized that the same method could be used in predicting the
movement of equities. Armed with my ‘secret weapon’ and limited
capital, I started to trade stocks. After my beginner’s luck ran
out, I suffered significant losses, even during the early phase of
the bull market in 1990s. One of the reasons was that I overlooked
one important factor: psychology of market participants, a variable
that couldn’t be described by numbers. After a trade went the
opposite way, I would search for proof that other people were wrong.
I refused to admit mistakes. How could I be wrong? Soon I lost
almost 80% of my trading capital and was forced to stop. I decided
to get educated in finance and market mechanism by reading as many
books as I could in basic financial concept, stock pricing and
market psychology. I also spent lots of time with a master trader,
watching him to enter and exit trades and act as a market maker for
several stocks. These helped me to climb the learning curve quickly.
In 1996, I, along with three partners, started a venture capital
firm, Millennium Capital Partners, as part of the Biotech Corridor
Initiative in Los Angeles. It gave me deeper understanding of the
biotech industry. With some unused venture capital and profits, we
opened a trading account in the summer of 1998. Several months
later, US market was hit hard by the Asian financial crisis. I was
fully prepared by that time and took great advantage of it. In late
1999, we separated the trading account from the venture capital
operation and started LYPS Investment Partners, an actively managed
investment fund focusing solely on the biotech sector. While I was
flying high, pressure started to build. I had too many duties and
each demanded more and more time: professional activities, general
partners for the venture and trading fund, teaching and research
positions at Caltech, managing my own accounts… In early 2002, I
basically reached my limits, both in time and energy.
Early last year I decided to start short term technical trading as a
way to reduce my time spent in market research. The first thing I
did was to find a team of mentors to put me on the right track. A
friend recommended this chat room and it’s been a wonderful
experience for me. This is such a unique place for traders at all
levels; a place to relax, learn, share your joy and seek comfort. I
found many friends here from all over the world. In late last year
there was significant turbulence in my life. I discovered a brain
tumor about the size of a golf ball during a routine physical
checkup. It was a devastating psychological blow to me. Again,
friends in this room helped me to go through the difficult times. I
didn’t give up. I will never forget the moment when I first logged
back in the room two weeks after a complicated surgery. This chat
room is like my second family. I will share my experience and
information with fellow members and make this room a magnet for
momentum traders worldwide.
Beside my professional duty, I am a general partner of Millennium
Capital and co-manager of LYPS Partners. I trade stocks and options
from my home and office. I have a very supportive family. My wife
Bo is a mission specialist at JPL and we have a 10 yr old son
Allan and a 5 yr old daughter Mindy.
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