My Scottrade account now stands at $822. I will be trading NDX index options with the goal of doubling my account every two weeks, thereby reaching $210432 by Friday July 18, 2008. I am fully aware that most people believe that this is impossible. I believe that it is possible but not probable. Even if I do not come remotely close to achieving my goal, I hope to make some type of profit and improve my trading skills along the way. Unlike the other journals I will not be scalping. I am using a cash account and will therefore perform just 1 round turn per day, using 100% of my available trading funds. My objective is to take advantage of the largest intraday price trend available, hold times should therefore average a few hours. I will not hold a position overnight. I will be monitoring a live 5 day, 5 minute prophet.net java chart of $NDX with 2 line MACD. In order to enter calls NDX must be moving up off of a low and the MACD line must be either crossed above the signal line or above the zero line. In oder to enter puts the NDX must be moving down off of a high and the MACD line must be crossed below the signal line or below the zero line. Once I have decided to enter a position I will use a limit order in an attempt to enter near the midpoint of the current bid and ask. Once I have entered a position I will set a stop price equal to 88% of the entry price. If however, after entering the position the market does not perform as I had expected I may decide to exit at break even or at a small loss, rather than waiting for my 12% stop to be hit. If the market performs as expected I will attempt to ride the entire price move.
Your strategy, repeated below, is one of the most commonly employed.... In order to enter calls NDX must be moving up off of a low and the MACD line must be either crossed above the signal line or above the zero line. In oder to enter puts the NDX must be moving down off of a high and the MACD line must be crossed below the signal line or below the zero line.
I'm really not trying to be an asshole, but why do you set unachievable goals? Worse yet, why do you start a journal with an unachievable goal? I have never understood this. Goals should be "stretch performance" but achievable. You build and gain confidence with every accomplished goal. Are you looking for admiration in the unlikely event you achieve your goal? Do you not get any personal satisfaction accomplishing a goal unless it is displayed on the internet? In all seriousness, what good could possibly come from this journal?
It's the day after my birthday. I'm holding my put overnight which is a violation of my rules. I have been able to achieve 50%+ returns per week in the past, this is why I believe that it is obtainable. But I have always ended up blowing up my account because of failure to adhere to my stop loss. I thought that maybe by having a journal it would help with my discipline issues. Unless there are people who want me to continue, I will end the journal.
So basically you have done this in the past and see no reason why you can't do it in the future, yet you fully acknowledge when you did it in the past you still blew out your account. Doesn't that tell you anything? I'm not trying to rain on your parade. I actually want you to succeed. Each failure does something negative to your psyche. Each success increases confidence, and improves your psyche. You don't climb a ladder by taking a flying leap at the 20th rung. You go up a step at a time until you reach the top. I would slow down and enjoy the journey unless your doctor just told you that you only have 2 years to live. Good Luck.
have you considered that the reason you were able to achieve 50%+ returns is precisely because you were unable to adhere to your stoploss? leveraged trading without stoplosses (hold until it comes back) will always produce spectacular returns until you blow up because you won't have losing trades until the last one...the 100%er.. just a thought. i wish you the best of luck...and am all for positive thought and action, but just keep in mind that if it were as simple as heavy leveraging with a MACD crossover everyone would have their own personal ATM....