Hi all... An alternative title for this journal was 2000 to 0 in as many trades as possible. First and foremost, I am a realist. Although I believe it is possible to make substantial amounts of money trading ,I don't believe this can happen without a huge amount of experience and certainly not with 2000 bucks. I am a semi intelligent guy who has taken a recent interest in the markets. I am the first to admit to the fact that I have No understanding whatsoever of the how's and why's of trading. That said there are some things that I do believe. I believe that TA is hokum. If it worked everyone and his trend line would be rich. I believe that I am not smart or educated enough to react to fundamental news releases. So where does that leave a clueless beginner? The crux of my 'trading Strategy' will work on the principle that price does not move in a straight line on all time frames.Reversals happen all the time in bull and bear markets. I like candlestick charts with no indicators and my plan is simply to pick out some trades going on gut. I can't pick perfect entry points so won't even try. I will just buy or sell at the start of the trading day. I believe that this is the best starting point. Start with nothing first before adding other tools at a later stage and build a strategy from literally scratch. I suppose the point of this journal is to get advice and constructive criticism so all feel free to add. Hopefully my 2000 will last long enough for this to be educational! Andre I have an account with IG Index in the UK. I have funded it with 2000 pounds.
I like the look of the NZ Dollar at the moment. With this in mind I will be buying some against the Aus, Gbp and Cad when the markets open in a couple of hours from now. Each trade will be worth 1 pound / tick which I think is fairly safe. My stops will be a close above the previous daily candle or 100 ticks which ever comes first. My profit targets are open. I will look to protect the position with a stop loss at break even after about 30 to 40 ticks. I wil endeavor to put emotion to one side. I think that trading small amounts helps as these first trades will neither break or make the account as I have a 2000 tick cushion before my first trading account blow up...which is something I would like to avoid but have been guaranteed will happen! Andre