Rags to Riches or Road to Ruin

[Sang Froid]

This journal is an attempt to keep a log of my trades enabling me to analyse past results in order to improve future gains. I will attempt to log not only entries, exits and profits, but also how I was feeling psychologically at the time and any positive or negative emotions that the trade or non trade induced.

I have starting capital of £620 and my aim is to end up with £10,000. However, I will be taking risks beyond the well noted "never risk more than 2% of your account" mantra and thus if I blow the lot I blow the lot.

I have no date in mind to reach the target amount, nor do I have a specific % account increase. My aim is just to reach the target. I have been trading for three years, and the last few months I have been hitting that 'heralded' consistently profitable part that everyone talks about. With such a low capital base and only risking a small % of my account my gains are not sufficient for my greed. I realise greed is a killer of accounts and a negative emotion when it comes to trading, but if something is worth going for you have to take a risk sometimes. £10,000 would enable me to go part time at work (weekends) and concentrate fully on trading during the week. This is a perfect reason to take a risk.

I generally have between 2 and 5 setups a week
I take trades off H1 and use M5 for entries and exits and only trade Cable and Euro
I open two positions at a time, both S/L of 25 (which rarely gets hit as I am out before based on rules of strategy) one T/P of 25 the other I exit according to rules of strategy.

Starting with £620 the lot size will be £1 per pip for both positions (so £2 in total)
Once balance reaches £2500 this is increased to £2.50 per pip for both positions (£5 in total)
Once balance reaches £5000 this is increased to £5.00 per pip for both positions (£10 in total)
Once balance reaches £10,000 this is decreased to £2.50 per pip for both positions (£5 in total)

Or I go bust and blow my third account.

Trading begins 31/08/10

 

[rc450]

third time lucky!

hope it works out for you, good luck.

 

[advfntrader]

good luck, I will be going live soon with a similar amount and similar goals. I will follow with interest...

 

[Sang Froid]

Typical, not a single trade all bliddy week! I had one really good setup but it was at 2.00am and although I was up and watching the charts at the time, I didn't take it as I generally don't like trading the Asian Session. It was a shame, had I have taken it I would have been up 200 pips or so but I'm equally as happy to have stuck to my plan. I had two other near setups during the week but these didn't quite fit my rules. They were very near to a good setup but just not quite. Again had I taken them I would have made some more pips but again I'm happy to stick to my plan. One other reason I didn't trade these two was because I was at work and so missed them. This is why I need to get this going so I can trade full time so I don't miss these setups. In hindsight though, I still don't think I would have taken these two trades, stick to the plan.

The other setup in the Asian Session, slightly kicking myself I didn't take it, but if it occurs again I still don't think I'd trade it. Need to stick to my plan and have discipline. All in all a very boring week but at least I'm not down!

 

[Dubai]

Good luck, Sang.

One question, why on earth drop back once reaching 10k to 5GBP a pip? Makes zero sense. You'll be risking less than 2% off acc based on 25 SL. Surely the idea is compounding the gains and grow steadily?

 

[Sang Froid]

Good point, I have no idea. I guess I haven't really considering hitting my target just yet and so haven't really thought that far in advance. Once I'm halfway there I'll think a bit closer about it.

 

[Sang Froid]

Ok so had a trade early on Friday after above post.

Looking back on the trade it was on ok setup, not amazing but certainly not just an arbitrary stab in the dark. It was by no means a 'highly probable' setup but was one that I would possibly take again. Anyway ended with a loss of -17 pips over 2 positions so -34 overall.

I think one of the reasons I did take it was because I hadn't traded all week, the setup was there, if however I had had a good week I perhaps wouldn't have taken it as like I say it was not a perfect strong signal. I'm pleased I exited the position fairly quickly, cable was ranging for a while on the H1 and I was tempted to go against my plan and leave it but as per discipline and plan exited when I had the signal to exit. worked out well, could have lost a hell of a lot more had I not done so. Anyway, I'm not going to worry about one loss or one trade, it's the bigger picture that counts.

Overall -34pips Account Balance £573.80, roll on Monday and hope I get a few more trading opportunities this week!

 

[Sang Froid]

Note to self.... re-read trading strategy, DON'T TRADE THE ASIAN SESSION.

After above losing trade had a further two. All three trades during the Asian Session which I explicity said I don't trade. I put this down to the fact I work strange hours at work. I end up watching the charts at night and see potential setups, the volume is not enough for my strategy to work at these hours and losses invariably occur more than winners. Expensive lesson learned which I should have known already, anyway, I've put it behind me and am now back into my stride.

The first trade I posted above I cut early, the second took out my S/L of 25*2 and the third I cut early for a loss too. The first two trades were for £1 pp on two positions the third was for 50p pp on two positions.

Since those losers I've hit my stride again and back to winning to ways. I've got my discipline back and trading my strategy as I should've been from the start. In total I'm -£62 balance is £555. Considering at one stage I was down to £473 I've made a good comeback. If I hadn't of been so stupid with those three early trades I'd feel a lot happier. This week has been a good week and trading the way I should be trading. Discipline hey... it's a funny old thing. I'm going to wait until I'm back to my starting balance before moving up again to £1pp by which time I should be in my stride and trading my strategy profitably. Anyway figures time:

In fact I can't be arsed going through them all so post a screen shot for easy reference for myself.

I want this journal to be as honest as I can. If I fail I fail and lose my money but at least it might help others avoid the mistakes I make. If I win I win and it might help others avoid the mistakes I make.

So... a warts and all account of my trading... let's see how things go from here, I just need to keep up my discipline, keep going, and listen to myself and take my own advice.

 

[Sang Froid]

A funny thing happened trading today. I placed my trades on cable... two positions both 25 S/L with one 25 T/P the other open and I felt NOTHING. I mean I felt nothing. I can't explain this in words so much it's only reveiwing my trades and how I felt that I realise this. I used to have slight feelings of aprehension before I placed the trades, a nagging in the back of my head of 'what if' but this time nothing. I was unusally calm, I saw the setup I wanted to see, I placed the trades, my T/P got hit I moved the second S/L up to b/e and waited for an exit signal. It all went very smooth. I remeber thinking that after the losses at the start I don't care about the money anymore, I've been down a lot more than this and whatever happens in this trade happens.

I focused on nailing the trade, entry, exit, and management and not on how much profit/loss I was in. Looking back on it, it was like an out of body experience, I just executed the trade, bish bash bosh.

 

[Sang Froid]

Another fairly good day today. Had a break even trade early on before hitting my targets this afternoon. Really feel like I'm into a rythym trading now, feel disciplined and feel as though I'm putting my skills that I've learned over the years to good use. If only I hadn't of had those 3 nightmare trades at the start I'd be well in profit now.

Having said that those 3 losers at the start taught me lesson and kept me grounded, perhaps it was good to get those out the way early before it really hurt. Well I'm back up to £580 or so now from being down to £473 at the start of last week, so over £100 in a week at only 50p per pip aint too bad in my books. My plan now is to reach that £600 mark before going at it again as per my original plan. Made some nice calls, need to learn to let my winners run a bit longer. Happy with the way I cut my losses early, I very rarely let my stop get hit and prefer to get out well before. The break even trade today I'm even more happy with than the profit trade. It just didn't do what I was expecting it to do on the M5 chart and used my gut to get out early even before I had the signal to get out. I know you shouldn't trade off instinct but sometimes you just get these feelings so I went with it and turned out I was right.

Again, need to keep my discipline now, I'm loving the fact I am sticking to a plan, not overtrading, not revenge trading and being patient in waiting for the right setup, even when I'm in the trade I no longer feel all panicky like I used to, wow looking back on things I used to be a bag of nerves, I can really see a difference in my trading now.

Anyway can't be arsed again writing figures, screenshot below to see how I'm progressing:

 

[Sang Froid]

Well this is taking far too long for my liking so I'm going to do what everybody says don't do, overleverage and scalp at £5 per pip.

Once I'm up to £5,000 I'll scalp at £10.00 per pip (if my account isn't dead by then).

This two or three setups per week is not enough, so I'm attempting to do what everyone says, scalp, taking trades purely off m5 chart overleverage etc....

10 pip hard stop on each trade, take profit anywhere between 10 and 20 pips. £5 per pip should get my account moving nicely either up or down, starting balance £520 start date Monday 27/09/10

 

[tzewaic]

any progress on this then?

 

[brettus]

A funny thing happened trading today. I placed my trades on cable... two positions both 25 S/L with one 25 T/P the other open and I felt NOTHING. I mean I felt nothing. I can't explain this in words so much it's only reveiwing my trades and how I felt that I realise this. I used to have slight feelings of aprehension before I placed the trades, a nagging in the back of my head of 'what if' but this time nothing. I was unusally calm, I saw the setup I wanted to see, I placed the trades, my T/P got hit I moved the second S/L up to b/e and waited for an exit signal. It all went very smooth. I remeber thinking that after the losses at the start I don't care about the money anymore, I've been down a lot more than this and whatever happens in this trade happens.

I focused on nailing the trade, entry, exit, and management and not on how much profit/loss I was in. Looking back on it, it was like an out of body experience, I just executed the trade, bish bash bosh.

What you on about? Out of body experience. As soon as you go into profit again, you will be scared to lose it. You're up to £650, then you go back to £600, you will be back to feeling annoyed and upset every trade until you get it back.

You're just showed us your lack of patience now that you're going for broke and you will be broke. 1 in 10k people will make 10k from £5 a pip from a balance of £520. Play the odds. Don't be a numpty. It's not about the money. Prove to yourself that you can turn £520 into £1k in a year then put more money in your account. You will just get burnt and never trade again.