A journey.

This is a discussion on A journey. within the Trading Journals forums, part of the Reception category; Hello, not sure how this will go. Initially this thread is for me. I know, selfish. Over time maybe some ...

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Old Aug 4, 2010, 10:47pm   #1
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Joined Mar 2008
A journey.

Hello, not sure how this will go. Initially this thread is for me. I know, selfish. Over time maybe some parts of it may become of interest to others.

I really wanted to make myself a journal to document my journey. I have been learning to trade for sometime. I don't know how far down the road I am.

Journey so far: Seems to have been a long time, I must have had at least a fleeting interest in trading for many years. Something about it appeals to me.

I will not lie, obviously the desire for more money, financial freedom is part of it. I am sure it would be of no great interest if that was not at least a possibility.

I think I first started to dabble at Forex with no clue whatsoever.. purely a punt on direction but at the sametime I think everyone has to get that stage out of the way.

Ok, I can not truly remember by I am sure I won and little lost a little and ultimately got wiped out by leverage that seems to be the general idea.

I think I then started to learn. I have read many books, from basic books on stockmarkets, charts,candlesticks, Dr Elder Trading Room, Naked Trader, Journeys of spreadbetter ( a female journalist who dabbled),Stock Operator (I may edit this to give it some more detail) etc.

I was introduced to Trade2Win, really opened my eyes. Read some great threads.

I don't know now (wish I documented earlier, what order or what they taught me).

At this stage, this may be dull but I feel I should fill in the background.

Some of the threads I remember finding fascinating were:

TheRumpledOne, never win again etc: I think there is a fair amount of critism and I have never really tried this trading style but I certainly think it opened my eyes to the reality of trading and made me realise there is no holy grail.

Some other threads I found fascinating, were: MrCharts. Although when I have attempted individual stocks it has been with mixed success..

Anyway back to the journey: Dabbled again at trading and learnt a valuable lesson of never catching a falling knife with Northern Rock I only really lost money that I had won from opening a spreadbet account (at that time you could get a prefunded account as an introduction) and I think it was a very valuable lesson on never catching a falling knife, do not chase losses, have an idea what your plan is.. where stops are, when you are wrong etc.. I think a very valuable lesson, oh why did I listen to 'experts' when shorting it all the way down would have been so much better.

Ok at this stage lots more reading: The Three Ducks, Phil Newtron Bomb's breakout strategy, GPD/USD 123, to name just a few.

At this point I decided to stick to something and started to 'do' the FTSE, my logic I could open a position before work. A very simple strategy.. see where it goes out of the gate at 8am, if it goes up then long, if down then short. I think this taught me a lot.

Money management, that is what it taught me.. by simple having a smallish stop and letting my profits run. I found, I could win just under 50% of time (not impressive) I soon realised that this was because even if I ultimately got the right direction for the day, I could be chopped out first... but my losses were small and my wins larger.. just by moving stop to breakeven when went my way and slowly locking profits in.

Ok I had a stumble again here.. thought I had sussed it had grown my account, the logic seemed to be if I could make money on FTSE100, then surely if it was going up I could make more by choosing the strongest performer in the strongest sector and the reverse when going down. Well this didn't work for me and turned a bit gambley and lost back most of my gains.

A break in trading life temporarily got in the way and lack of spare funds.

Ok, then I decided I need to crack on, a few months back I deposited a small amount with a large spreadbet firm and by slowly using my ftse system I grew my account to just over 8 times starting amount Ok, even then I made mistakes, I was fully aware at outset that I was underfunded and over leveraged but fortune smiled on me and I had a good run.. I have slowly increased position sizes (whilst reigning myself in an making my trades a smaller percentage of fund.)

This went reasonably well. Got a little over confident again, thought if it works on FTSE should work on Dow (but discovered a bit volatile), had a bit of a hiccup, little bit of a draw down, not much mind.. just a week or so profit. Made me realise I am not invincible and am now doing some more research, why?

Because I have learnt a few things:

Money management is very important (taken me so long to start to learn that).
I want a system that is simple (but not so simple that it is just random).
My system feels too gambley and I would like something which is giving me an edge (although I don't expect to accurately predict the market).
I would also like the option to look at more markets (primarily so I go for the strongest trades and not weak trades as the only option on the market).

This led me to look at forex again. Has always thrown me a bit but I think my maturity as a person, as a trade is showing a little. I have lost the gamble and grown a little more patient. Prepared to stand aside at not blindly jump in.

I love the simple approach of the three ducks relying on finding the most trendy of trend things. This is an approach I am trying to implement and has worked for me more of than not on little trades I have tried but time to check the market constantly can be a problem when you work.

I love the breakout approach, I think somewhere in my mind it feels right and I feel more comfortable with it. I have also been reading on another forum a excellent thread on essentially waiting for a retracement on a trend and then diving in for 20/40 pips. I love this kind of simple approach and think this will form a big part of my strategy for awhile.

This is long isn't it?

Anyway I have learnt I don't want a million indicators, I don't want to gamble, I don't want to be over-stretching my account so that fear and greed become too big a factor. I want to gradually improve and develop my own trading style.

This thread will hopefully be me trying approaches and seeing how things go. I have kept a journal of my trading and I know with patient it is possible to make money. Bigger wins, smaller losses.. I think I am attached to my ego and I would prefer a system that at least puts me in a winning trade 50% of the time. This could be a weakness as I understand many good traders are wrong often but make up for it with very big wins.

I doubt anyone has got this far but maybe this thread will become interesting with time. At the moment I imagine it looks like a pile of jumble clichés but I think that is how my mind is working. Anyway I think it takes awhile to learn these things and I may now be ready to start my journey... resume my journey.. it may be interesting we may teach each other things, exchange ideas overtime.. it could be a one post dullathon that never gets off the ground but i have put finger to keyboard and hope to gradually add to my journey, if only so I can review my own progress.

Will tip any interesting threads I see. Bye for now.

Last edited by bangkoker; Aug 4, 2010 at 10:56pm. Reason: correct some of the glaring grammar erros
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Old Aug 5, 2010, 8:45pm   #2
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Joined Mar 2008
Re: A journey.

bangkoker started this thread Ok, been a quiet week this week as I have promised myself to improve.

Also aiming to only go for the best trades.

So really a non-trading week but a couple of small results.

Ftse * 2 trades: Tuesday lost 8pts on a short, and Wednesday made 62pts on the late morning, early afternoon upswing. So I did better than usual by hardly trading +54 pts

Forex, Using the Three Ducks system I picked up 40 points on Monday on GPB/USD long

and also on Monday using Phil Newton Breakout strategy picked up 10 pts for 2/3rds of trade and let the other 1/3rd continue to 33 points (short on EUR/GBP) which effectively worked out at 26 pips of my usual trade size.

Ok, not very well documented, I will aim to document as I go and try and work out how to link to charts etc but not a bad week considering just trying out strategy and trying to sit on my hands and only pick the best trades.

Have a good weekend everyone

Last edited by bangkoker; Aug 5, 2010 at 8:46pm. Reason: wrong words used.
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Old Aug 7, 2010, 11:42am   #3
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Re: A journey.

forex traders use the term pip, not point.
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Old Aug 7, 2010, 2:32pm   #4
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Joined Mar 2008
Re: A journey.

bangkoker started this thread
Originally Posted by Kant View Post
forex traders use the term pip, not point.
Indeed, got it right in one place, i'll try to be more pip/pt sensitive.
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