Discussion in 'Journals' started by fxtrader101, Oct 8, 2007.
i will post my weekly returns and summarise on a monthly basis
the ground rules are these:
I have given myself the challenge of 20% per month. I am using a 10% position sizing strategy. 10% of my K will b extingquished on each losing trade. If this thread stops for any means, u can assume my K has been extingquished. I have traded for 6 years and will only invest in FX.
16/8- end of September
return / month: 13.48%
Please bear in mind. 10 % of my Capital is extinquished with each wrong trades.
Will put my trades on here as i execute em. so u can see im not full of shit. Cheers.
Please note: I am not giving myself the pressure of definitely returning 20% per month. As such my rules are:
Only trade the trend.
Only enter into a 3:1 risk reward strategy
Always employ a stop equivalent to 10% of my capital
Only enter at most 1 trade per day.
Will look to pyramid as soon as first trade and each subsequent trade is safe and cant incur a loss due to a movement of the stop past its entry.
Most trades are at orders.
Only FX trades.
Will look to hold trades 4-15 days or as analysis dictates.
I will trade as i see fit. some weeks there will be no trades.
If i stop this thread u can assume i lost all my money.
want to xplain myself. I as most others here have lost a fuck load on trading.nearly 50K or just over. However doing that gave me the skills. 6 years in teh business and a hard core ELLIOTT WAVE man. Perhaps i have the reqd skills, perhaps i dont. you will see over the next few months if im still posting here. as u can see from my rules, they are not exciting or risky etc. i learnt trading the hard way. by losing money. i find now my rules are just like the pro traders in books. my advice is there is no holy grail but u can b a millionaire in a few years. The only rule i have violated on this forum. is im trading 10% of my capital each trade rather than 5%.
what i found was that reading trading books was fundamental to understanding it. but not until u tried, lost and learned is when u start to understand it.
i remember that i was more concerned with finding a trading methodology than knowing about money management. all trading books warn u the latter is more important than the former. but how can an amateur trader know this.
his thinking is 'if i win on the majority of trades, i will b profitable ' . this unfortunately doesnt hold true. regardless of the methodology, at best over time u will average 30% if u r good. more if u r very good. but 30% will make u a millionaire if money management is successful.
let me xplain.
If 1/3 of my trades are good. and 2/3 are bad..
How do i make money?
the good ones have to b very good and the bad ones have to be modest. hence u always employ a stop and pyramid where possible. u have to make the good trades really good or u will never succeed. when u r ona good trade, become risk seeking, buy more of it.
When u r on losing trade, never average down. u dont understand the market and where u r in it. b risk averse and get out at your stop. reasses.
even a modest methodology can make u money if u employ correct money management techniques. its that simple.
Sounds like you should be successful to me.
You know what to do (trade with the trend, average up, use a stop), and know from experience what happens when you don't follow these rules.
There is nothing better to stop the day-dreaming than to have received a hard slap last time you did that
Two questions though:
1) Will you be buying on pullbacks/breakouts/both?
2) Don't you think 20% is a lot per trade?
Good luck anyway
no breakouts. definitely pullbacks. Im trying to catch cable at moment.
Only 10% per trade. thats still double what risky is defined as. 10 poor trades in a row and im out. but i think i have as high as 30% or 40% success rate on a trade. that is more than enough to rake in a fuck load of money.
10% is too much per trade but its the only way i will make 20% per month i figure. its risky but im going the whole hog. im getting older and have to take the risk now. if im as good as i believe then i shouldnt lose the lot. if im wrong about myself , i will lose the lot and perhaps look at something else. 6 years of trading has to give. i have given up many things in learning this art so its time to put it to the test.
I chose a forum to do it in as i want to continue to post if things dont go according to plan and see how i react to that. given what i was 5 years ago i think i can handle it all and come out successful on the other side.
Missed my chance for going long on gbp. now up 200 pips. my order was 30 pips from its dip @ 2.0252. now currently over 2.0450.
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