How to handle big swings - New traders Info

[Lee Shepherd]

NEW TRADERS INFO

I thought I would post up a screenshot of my platform to highlight big (ish) swings on account.

I have built up a few more positions for this month and although they initially start off as a loss (for obvious reasons as spreads/comms), currently show a small profit on account.

The account is still very much under leveraged so there is plenty of room for more trades, drawdowns and profits.

I’m posting this screenshot and will post another one within a 24 hour period. This will highlight the amounts that the account has swung by. I would expect on the trades currently running and assuming no losses or profit has been taken, a swing in the region of £2-3k.

These are small numbers to the pro’s on here and I appreciate that, however to the smaller person or new trader, these swings can affect the mind and subsequent trades thereafter – it’s about keeping your nerve – do or die.
You then have inner conflicts such as ‘I should have taken that £3,000 yesterday as it’s now turned in to a minus’. However, when you are looking to clear several thousand a day (loss as well as profit), these figures would be akin to someone trading on a smaller account and having a loss or profit of say £300. Scaling up is one of the biggest and hardest things to do in trading and can lead to trader ruin if not done correctly – it also has huge psychological impacts. Making smaller sums is always a lot easier.

I’ve posted this in a new thread as appose to my trading diary so that people can feel free to comment as they like and ask questions. Please note: not all questions may be answered, more so if of a personal nature to the trading account.

NOTE: For transparency I have left the amounts in on this platform picture but taken out all other irrelevant information regarding the trades themselves. Obviously the trade prices have been removed otherwise the smart ones on here will suss out what trade is what.

For those unfamiliar with IG Index, you will see the profit/loss on the top left hand side.


Profit on account currently runs at: £1,963.00

See you within 24 hours.

Lee

 

[brewski1984]

I have found that experience makes you immune to it. I used to cry at giving back a tenner profit but a few times I've sat through swings of 2-3 months wages in a day... proper gambler me

 

[Lee Shepherd]

I have found that experience makes you immune to it. I used to cry at giving back a tenner profit but a few times I've sat through swings of 2-3 months wages in a day... proper gambler me

Having spoken with you personally, you are far more advanced than you give yourself credit for. Most do not have this hardened steel.

PS: No point in me putting up a screenshot just yet as profit on account is now just £2,800 something - less than a 1k swing. Hardly the swing I was looking to show. Nonetheless I will stick to what I stated and post a screenshot a little later. I was actually hoping for a huge loss or even bigger profit to show. If I don't get it to show you today, I will keep posting screenshots until I show you a big (ish) swing.

Just goes to show no one knows what the markets will do next.

Lee

 

[Lee Shepherd]

Well that's a bit boll0x. The figure on account is the same. Albeit some trades have increased in profits whilst others have lost profits. Well I didn't expect that to happen and to be honest, can't recall the last time the account was the same after 24 hours - with the exception of the weekends.

Profit on account shows £1,962.00 - £1.00 different - you wouldn't believe it if I didn't show it - I still don't.

See you in another 24 hours. (or sooner)

Lee

 

[tar]

Its clear you are hedging with different expirations , Mar vs Dec ... etc .

 

[Lee Shepherd]

Well still nothing to report. 2 days running and the account - although several positions have gone down whilst others have gone up - still remains around the same figure.

So much for showing wild swings. I'll look to post a screenshot nonetheless shortly and will continue to do so until I show a good rise or fall. I've never had such a quiet 48 hours.

Lee

 

[Lee Shepherd]

Ok, So here is another screenshot of the platform. I am hearing on the wire that we will have movement this afternoon so I am posting up the platform now and will expect to post another one later on ...... today.

How true this news is, is anyone's guess but nonetheless it is being traded off.

Current profit on account is £1,902.00

Lee

 

[Lee Shepherd]

Ok, So we got the swing I was after and the news update allowed me to take profits.

Thanks to the others for this info and research.

The screenshot from the platform is now running at:

£5,145.00

That's up £3,243.00 in a matter of hours.

That's the swing I was getting at.

We got there eventually - albeit 48 hours later.

PS: For those paying close attention, you'll notice that one of the trades has £30 per point added to it. That's the true meaning of pushing a trade. ie, adding to winners and cutting losses.

Lee

 

[tar]

WASDE World Soybean End Stocks New Oct: 96M (est 97M; prev 98M)