The Forex holiday fund

[candles]

G'day. I basically gave up on this journal a while ago. Got a bit bored woth posting screenshots and charts etc.

Am happy to say that nothing's really changed. Still trading tiny stakes(10-20 pence per point), and my £300 starting account now stands at about £2350.

However, I am considering doing something NUTS! Thinking of basically 'going for it', and trading real stakes. The kinds of stakes that assuming i did well i could make a living off of. Now, from what i read I am better off going direct access if i choose to do this? My broker still has a 10 pip spread on my main instument (SPX) and I dont think it would be wise to scalp with such a spread (especially at big stakes)

Im currently looking at AMP futures. I like using ninjatrader. Anyine with them? I dont know the first thing about direct access trading really tho . I assumeI have to pay for data? platform? is there tax?

I know i would be very depressed if i ''went for it' and lost the money ive worked so long and hard for in a matter of weeks, but id get over it. As my dad always say, "its only money"

Thoughts??

Thanks....

 

[candles]

cheers Brutusdog. Anyone else got any advice or input for me about the above post? I've been talking to myself for nearly the whole journal Where's BSD?

 

[firewalker99]

I know i would be very depressed if i ''went for it' and lost the money ive worked so long and hard for in a matter of weeks, but id get over it. As my dad always say, "its only money"

Thoughts??

Thanks....

I haven't followed this journal from the beginning, but since you asked me to have a look... since you started out with little and made a decent profit from it, I see no reason to doubt your technical approach...

About going live: it's best to start out with minimal size. It's very easy to become emotionally attached to the outcome of a trade when you have big swings in your account (profit/loss) imho.

I have been down that road and putting to much stake on, can cause you to ride an emotional rollercoaster. Trade what you're comfortable with and don't scale up too quickly. Having to make up for a 20% loss, requires a 25% gain... so the deeper you dig yourself, the harder it gets to crawl out of the hole again.

Where your comfort level lies, is something only you know. But if you start getting sweaty hands, you've most likely crossed the line

Good luck!

 

[candles]

LOL...Cheers FW. It certainly wuold be a drastic step going from my current 20p per point to £5 per point (minimum ES contract is $10 per tick? so 'roughly' £5?...more infact)

Bit of a dilema, because to scalp the SPX properly I think I need to trade DA but that also requires big size. I guess I could trade the YM (dow futures) which I believe is $5 per pip for the mini contract, but I do prefer the SPX. I'll give all of this some thought.

As far as today's trading goes - I was short for todays drop from quite near the highs, and as a result am currently at an account high of £2380

 

[firewalker99]

LOL...Cheers FW. It certainly wuold be a drastic step going from my current 20p per point to £5 per point (minimum ES contract is $10 per tick? so 'roughly' £5?...more infact)

Bit of a dilema, because to scalp the SPX properly I think I need to trade DA but that also requires big size. I guess I could trade the YM (dow futures) which I believe is $5 per pip for the mini contract, but I do prefer the SPX. I'll give all of this some thought.

As far as today's trading goes - I was short for todays drop from quite near the highs, and as a result am currently at an account high of £2380

If you're comfortable with the SPX I wouldn't go to the YM. There are specifics about each market although the principles are the same. You could always go for the ETF's (DIA, SPY, QQQQ) first... play around, trade DA, but without necessarily dedicating much money to it.

 

[candles]

But if I trade DA with SPY for example, ill be subject to the PDT rule would I not??

 

[firewalker99]

But if I trade DA with SPY for example, ill be subject to the PDT rule would I not??

Yes, unfortunately you will... so you'll need minimum 25k in your account, although the risk is a lot less than with futures. Kind of stupid rule, isn't it?

 

[candles]

Absolutely.The PDT rule is dangerous in fact. If I did have 25k though, id scrap futures and daytrade stocks. Unfortunately that just aint gonna happen.

Its not easy being a little fish in a big pond....

 

[brutusdog]

LOL...Cheers FW. It certainly wuold be a drastic step going from my current 20p per point to £5 per point (minimum ES contract is $10 per tick? so 'roughly' £5?...more infact)

Bit of a dilema, because to scalp the SPX properly I think I need to trade DA but that also requires big size. I guess I could trade the YM (dow futures) which I believe is $5 per pip for the mini contract, but I do prefer the SPX. I'll give all of this some thought.

As far as today's trading goes - I was short for todays drop from quite near the highs, and as a result am currently at an account high of £2380

am i missing something, why cant you use who your using now and do say 2 quid a point?

you seem to be saying that to do bigger size you have to scalp?

doesn't look like your scalping now so why change?

even if you went to a quid and you keep the same performance (no reason you shouldn't) you will run that up pretty quick cos your making some sweet pips

 

[candles]

am i missing something, why cant you use who your using now and do say 2 quid a point?

you seem to be saying that to do bigger size you have to scalp?

doesn't look like your scalping now so why change?

even if you went to a quid and you keep the same performance (no reason you shouldn't) you will run that up pretty quick cos your making some sweet pips

You're not missing anything, and its a good question.

The reason is because of the spread of 10 pips I am mainly (80% of my trades?) trading a longer term System that I developed over a year or so. It has done very well so far, but it CAN use large stops (the 'system' has 3 or 4 systems or strategies depending on my EOD data and 2 of them use large stops). I kind of want to get away from it and concentrate on my scalping.

However, My instincts are usually pretty good, and at the moment they're telling me NOT to jump in with a direct access broker just yet.

I've decided to slightly increase my stakes and continue as I have been with my system (afterall it would be silly to abandon it. It took LOTS of study to develop and despite my reservations about the risk it allows, its given me £2000 at 10-20 pence per point so far). However, I am also gonna experiment scalping with the DOW. My broker has a 4 pip spread on this which I can live with and i'll just see how it goes.

Cheers for your input guys.

 

[hwsteele]

I have to tell you that my hat is off to you!
You have done very well for your self and I can tell you will continue to do so just from the fact that you have kept your trades small. The first thing most people do when they start having success it to trade larger and larger stakes. You have been good and held back even when everyone else has tried to get you to trade bigger. Keep up the GREAT work and I'm sure good things are going to continue to come your way.
Be who you are and you will be much better off. You are a good example of that.!

 

[brutusdog]

You're not missing anything, and its a good question.

The reason is because of the spread of 10 pips I am mainly (80% of my trades?) trading a longer term System that I developed over a year or so. It has done very well so far, but it CAN use large stops (the 'system' has 3 or 4 systems or strategies depending on my EOD data and 2 of them use large stops). I kind of want to get away from it and concentrate on my scalping.

However, My instincts are usually pretty good, and at the moment they're telling me NOT to jump in with a direct access broker just yet.

I've decided to slightly increase my stakes and continue as I have been with my system (afterall it would be silly to abandon it. It took LOTS of study to develop and despite my reservations about the risk it allows, its given me £2000 at 10-20 pence per point so far). However, I am also gonna experiment scalping with the DOW. My broker has a 4 pip spread on this which I can live with and i'll just see how it goes.

Cheers for your input guys.

sounds like a plan

 

[Venture Travel]

I have enjoyed reading, and am inspired by your journey. I have recently opened a CMC spread betting account, and it isn't going very well at the moment. It's only small, as I just decided to try it out, as I spend a lot of time at home. I have lost just 150 quid so far - just betting pounds. I win some, and lose some. I wondered if there was anyone that actually makes money at this. This forum, and especially you, Candles makes me realise they do.

Good luck for the future.

 

[candles]

thanks mate.
I've got a LONG way to go in this journey myself, but hopefully we'll both get there in the end.
Im not really in a position to be giving advice, but im assuming you have done lots and lots of simulation trading? After loads of screen time you'll find what works best for you, and then its about mastering the psychology of it all which is a whole new battle. Waiting patiently for the 'good trades' to present themselves. Not grabbing profits too early. Taking your stops, and no being phased to take the next signal.

Yes, there are people who make money at this (I dont include myself in that group yet though)
It really takes alot of work and stress to get to that level though. They say 95% of people lose. However, I believe that a large chunk of the 95% are people who jumped in without much preperation, lost their money and call it a day. I think if you can stay in the game (maybe move to a broker that allows even small stakes than £1 per point?) long enough, your chances of success increase by a significant margin.

Good luck.

 

[candles]

here's todays trades. Nothing fantasic. The good trade was yesterday where i shorted the GBP/JPY in the chatroom (wasp was also short so it was bound to work ) Took nealy 300 pips from that.

Trading slightly bigger stakes now as planned, and am looking at a £150 profit for the week so far.

 

[Claudia123]

here's todays trades. Nothing fantasic. The good trade was yesterday where i shorted the GBP/JPY in the chatroom (wasp was also short so it was bound to work ) Took nealy 300 pips from that.

Trading slightly bigger stakes now as planned, and am looking at a £150 profit for the week so far.

You doing good - but now is the time your confidence is high and its easy to get complacent - time to be careful. Just a thought -good luck.

 

[candles]

Attached is my most recent trading.
Saclping on oil fro 20 pips per trade (give otr take)
GBPUSD - first one got stopped out but others did ok
Went long GBPJPY overnight and closed half for 100 pips and the 2nd half for 200 pips (nice move) It looked to me that it had found obvious support on the hourly.H4 time frames and was turning up. Igave it a fairly big stop and a big target.
The interesting one is the DOW long. I managed to catch the bottom, but it was at £1 per point! thats big for me and i think the size led to my rediculous exit. took 20pips from a very fast 180 pip move.

 

[firewalker99]

Attached is my most recent trading.
Saclping on oil fro 20 pips per trade (give otr take)
GBPUSD - first one got stopped out but others did ok
Went long GBPJPY overnight and closed half for 100 pips and the 2nd half for 200 pips (nice move) It looked to me that it had found obvious support on the hourly.H4 time frames and was turning up. Igave it a fairly big stop and a big target.
The interesting one is the DOW long. I managed to catch the bottom, but it was at £1 per point! thats big for me and i think the size led to my rediculous exit. took 20pips from a very fast 180 pip move.

Size can often cause emotions to kick in. I'm sure if you put less on the line, you would have had no problem holding on to that trade... As you know, technically there was no reason to exit.

 

[advfntrader]

I've found scalping Oil too dangerous. 8 pip spread + risk to grab 20. not worth it I have found.

 

[walterboris]

If the probability of the trade winning was high, so the low reward to risk ratio was considered to be acceptable.