Mr Cat learns to trade

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robicat

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Nkay....

Here's my journal..... feel free to comment, though please remember that I am writing for myself.

Seriously..... advice is welcomed as I am a rank beginner.

So heres the outline....

I got interested in trading about six weeks ago, stumbling onto a spread betting site trawling poker sites. Looked interesting and blew $50 bucks over a couple of weeks on binarys betting. Since then i have been paper trading CFDs and having a look at a few platforms namely IG and CFC.

I decided to make $1000 available in ninety days time, as long as I demonstrated discipline by establishing a solid health and fitness routine over the ninety days. This is to leverage me into exercise and weight loss by adding a reward.

Since then i have opened a new account with the bank, and that money when I get it will sit there until i have a system that I feel confident with.

Q1 What are my goals?

Financial

I am not into money in a big way and have no desire to be massively wealthy. I am starting a business as a psychotherapist, and i do not want to be dependent on that alone for money, as i only want to work with clients i genuinely believe i can help. I am at present financially secure and have some concerns about retirement income in 20 yrs time.

1. Have the skill to make a small income that I can earn anywhere anytime, By small I mean $100 - 200 a week.

2. Make money so that in the next couple of years I can invest in some stocks, and make money through the 2011-12 raging bull market.

3. Make money to cover some special improvements on our house.

Psychological

Background Myers Briggs ENTP, Ennegram Type 4, Libra/Scorpio

1. Develop ongoing self discipline.

2. Use trading as a mirror to gain self knowledge.

3. Prove to myself and others that I can succeed.

4. Outlet for the competitive side of my personality.

Intellectual

I have had a lot of success in intellectual pursuits ie theology, psychotherapy, philosophy. All of these have been meaning based rather than method based. I want a test that has a really clear scorecard.

1. Have an avenue for ongoing intellectual stimulation.

- developing trading methodology
- following global economic trends
- contextualising politics in economics
- simple computer programming

Social

I really enjoy learning things as a way of meeting people. As I am isolated online works well.

1. Continue to explore my social learning style.

2. Use learning trading as a learning about learning experience.

Lifestyle

1. Income stream that allows me to live overseas for periods of time.

2. Income stream that allows me time and space to grow food for my family.

***********************


Cheers
 
Nkay so here is the plan.....

1. Paper trade untill ive got something that works with $1000 capital.

2. 1-2% risk per trade.

3. Journal each trade.

4. Evaluate each day.

I'll play a paper game of 1000 points per day and measure results on a daily basis.

The aim of the game is to learn how to identify and select deals that work consistently.

Scorecard

Result 10% up - +1 pt Win
Result + 0% - 10% Draw 0 pts
Result - 10% down -1 pt Loss
Result -`10% to - 20% - 2pt Significant Loss
Result loss greater than 20% per day - 5pts Spill
 
robicat said:
Nkay....


Financial

1. Have the skill to make a small income that I can earn anywhere anytime, By small I mean $100 - 200 a week.

2. Make money so that in the next couple of years I can invest in some stocks, and make money through the 2011-12 raging bull market.

3. Make money to cover some special improvements on our house.


Cheers
Click to expand...

Robicat,

Very open of you to publish this on here and I wish you success and good luck.

For what it's worth (and I'm only successful in my own little way with my own little methods etc) you seem to be well-versed in the psychological side of your business plan (not surprising i suppose, seeing that it's your profession). But what about the actual trading side?


1. Have the skill to make a small income that I can earn anywhere anytime, By small I mean $100 - 200 a week.
Click to expand...


If you develop the appropriate skill, you can just make more money by trading more / bigger stakes - so I don't think it's any easier to trade for $100 than it is for quite a lot more, [technically that is, disregarding the psychological aspects]. Obviously there are limits to this but i think you can be very happy with your results long before you get limited by trading size.


2. Make money so that in the next couple of years I can invest in some stocks, and make money through the 2011-12 raging bull market.
Click to expand...

How do you know about the 2011 bull market? Just concentrate on learning how to trade any market - what happens if the bull market is 3 years late?

3. Make money to cover some special improvements on our house.
Click to expand...

It's nice to have a plan for your hard-won efforts but that won't actually make you a better trader - in fact if you've really set your mind on getting that money it might even make you do trades that in hindsight you wish you hadn't.


I think that in principle, business plans are a good idea - if you get into trading in a serious way you are in fact running a small business and should treat it as such. However, without a successful methodology (be it tea-leaf gazing or whatever) you are stuffed. There's loads of good advice (and some cr*p - so be careful) for beginners on this site, from some very experienced and skilled people. Make sure you read and understand it before betting the farm.

My basic advice would be to:
a. Above all, keep it simple
b. Develop and test a basic methodology
c. Start with small money

Many people advise against paper-trading, and they have a point: it's not the same as the real thing and just because it works doesn't mean it will be ok for real. However, I've found it useful and certainly, any method that fails in paper trading is unlikely to work for real. I liken it to aircraft simulators - believe me, they can be very realistic and are excellent for testing procedures: so is paper-trading.

All the above just IMHO - treat it like all advice: think about it and make your own judgement. No one else can trade for you.

Good luck - keep us updated. Only the brave publish blogs. :LOL:
 
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Thanks for the reply 007....

I have no idea really about trading methodology as yet. All ears to learn though, and finding this site useful.

Paper trading?.... $1 a point is too much for me to pay for lessons, so paper trading is just going to have to do. Psychologically it only works if you really care about the results so I will set up a graduation process. I am also planning to set up my paper trading as a set of drills.
 
Good luck, wish you well. I feel you should achieve your goals, you seem like you will be able to.

P.S. I think i speak for many when i say that i was rather disappointed not to see pictures of a cat walking on a keyboard.
 
Nkay,

In a deal - AUDUSD.... Buy Signal trigered and got in at -8873, set the stop at-8840 as it was a breakout situation, ready to kill the deal manually if it tanked immediately. Once it price at about 68, i pulled the stop up to 60, so its a $13 risk - say $25 reward. Binarys are pricing a 8900 touch at about 1-2 so i'm about right.

I quite like the position. And it's one up for the gimmick.

Price is now testing resistance at -8890.
 
Bought stop up to buy price locking in $10. The price is going through the roof. I'll have a look at doubling if it breaks 8950.

Moved stop up to 8926 locking in 20. Then sold at 8941. + $35
 
Dinner time.

I think the South Pacific Peso is going to bounce off 8950 for a while and then go to 9100.

Anyhow the gimmick i'm trying is to Buy on three green candle (nice solid ones) and sell on three red candles. The Candles need to step up, or down. Long wicks to the top or bottom, or top shapes, exclude the formation as a signal. The first movement of the next period confirms if it is in the right direction.

I clear my long positions on RSI > 80 and my short on RSI < 20.

I want to get 2-1 to 3-1 on deals that are designed to minimize risk. Risk profile on a deal is flexible between 1%-3%.
 
Last edited:
Sell signal -1 @ 8886 stop 8896 Risk 10

Stopped out Loss 10
 
Last edited:
Summary 08/11

AUDUSD

4 deals - 2 Win 2 Lose (+36/1000)


1- +15
2- +35
3- -4
4- -10

Draw 0 Points
 
Plan.

Watching 10min EURUSD and AUDUSD.... when i get a signal here, i will go to 1 min and play if i get a confirming signal.

Risk -1-3% Per deal looking for 2-1, to 3-1.
 
Euro's threatening a move north. The US economy is as cactus this week as last week.

My idiots thinking is that both the Euro and the Aussie is oversold. So ill be more selective of bear plays.

Watching 10 min charts, doing admin and chores.

*****

In on Euro @ 14845 - stop at 24 - $24 Risk Upside? say early 80s $35.... ill need to pull the stop up to improve odds.

****

locked in second contract at 60.... Stops set a 50 20 Risk Upside say 60 Good position

*****

Closed position @ 1.4879 Profit $53
 
Both index up to 88 RSI +80

******
Next deal may be one to let evolve into a longer position.
 
Buy Euro @ 903 Stop at 85 $18 Risk

Theres up to 130 Upside with a resistance point at 27 so odds are good. Risk at 1.8% is higher than i'd like though.

Stop at 85 filled loss $18.00
 
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