This thread is my way of learning how to trade stocks, help me find edges, expose my weaknesses, work on self-development, and track my progress. As this is a journal to track my progress, others are welcomed to post and share their thoughts. Constructive criticism is okay but any kind of negativity will be ignored. I used to trade option spreads about 15 years ago when living in Europe, non-directional strategies in indices and liquid ETFs, managing the inventory by the Greeks and not by technical analysis, so switching to directional stock will be quite a challenge for me. Then I had a number of debilitating injuries, and since then my life has been in chaos due to some of my functional limitations. I spend most of my life in bed because I cannot sit for more than a few minutes due to debilitating pain, am running out of money, and so I need to start having a consistent regular income while I’m in bed instead of starring at the ceiling and indulging in self-pity. Part of me wants to go back to options as it would be the easiest path for me, but because I’m now I’m living in the Australian time zone, it would not be a realistic long term solution because I need a "Set And Forget" orders so I can go to sleep after midnight. Also, I don't have a portfolio margin, but now I have access to CFDs, so am thinking of stocks / CFDs. In terms of strategies, I haven’t yet come up with specific strategies, that is something I will be experimenting with for the next few weeks/months while I’m getting organised with the admin side of things. My strategies will be based on my understanding of how the markets work, and trying to focus on momentum trading, perhaps some reversal patterns as well, but I think following the buying/selling pressure will be my main focus. The frames will be mostly "end of day", and eventually I'd like to add some intraday strategies around the US equities open so I can set orders and then go to sleep. I don't want to babysit trades, because A) the timezone, B) I'd screw things up Some of the obstacles that I need to be currently addressing are: Developing a very structured approach (paper trade until breaking even, it might take a year or more) Eliminate self-sabotage Develop rules for risk management and for set-ups Develop checklists Create routines Eliminate unforced errors Focus on the process Thorough preparation Develop business plan I think for the next few months I’ll be overwhelmed and all over the place until I develop an efficient, structured approach. I just have to take it step by step.
Why CFD's , because of leverage ? In any case, i would suggest to avoid both at all costs. Btw, don't miss : https://www.elitetrader.com/et/threads/elite-trader-school.360180/
There are good CFDs for equity index products that offer advantages compared to trading ETFs or futures. But for (US) stock trading I would prefer options over CFDs. It is a bit more complex but you will have many advantages by going with stock options instead of CFDs.