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, 9:47pm   #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 9:56pm. Reason: correct some of the glaring grammar erros
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Old Aug 5, 2010, 7:45pm   #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 7:46pm. Reason: wrong words used.
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Old Aug 7, 2010, 10:42am   #3
 
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Re: A journey.

forex traders use the term pip, not point.
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Old Aug 7, 2010, 1:32pm   #4
 
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Re: A journey.

bangkoker started this thread
Quote:
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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