Trader Learning Review

jonnyteg

Newbie
3 0
Guys,

OVERVIEW: New trader 1.5 years the full learning experiance, still to master, if anyone ever does :clap:

INTRO: I have always been interested in stock trading, over the last year or so I have opened demo accounts with various spread betting company's. In the accounts I have tried various systems and trading styles with various results.

ME: I currently work within the IT domain with a decent job, nothing your ever going to become well off on, however comfortable which I don't want to be! Being in networking dealing with computers and network devices I presumed I could have a bash at stock trading. With my analytical skills I assumed it would be easy, how wrong could I be.

FIRST STEPS: I opened a live account with plus 500 with a small amount and watched Bloomberg on TV and went with what they were talking about. Note at this time I was foolish and never even realised the term bullish or bearish, nor used any indicator price included.

RESULT: Blew account! I realised this would need dedicated learning. Also not knowing at the time plus 500 was a terrible platform.

TRAINING: I researched the web and found a mountain of knowledge on technical analysis , brokers etc. At the time I took in what I wanted to see and still did not have full understanding. One thing I did take in was not to go live until I became profitable over at least 3 months.

SECOND STEPS: I started using technical analysis into trades and changed broker to Intertrader. I was looking for quick returns and was using 5 min charts with stochastic 14-3-3 waiting for oversold or overB and then using 1 min charts as entry with the same rule for entry with 5m time frame long/short. Not yet researched risk reward ratios/money management, I was going £100 per pip with a 10k balance with 3pip take profit, this with no stop loss in place, I believed as the 5 min chart was about to change the direction. My best run was 30+ trades in a row resulting me in believing I have cracked this and started to consider going live.


RESULTS: The system did make profit over a short time period double the account start, which I now attribute to luck, however the no stop loss soon caught up, this trading required constant chart views, as I was at work this was becoming a issue which probably exaggerated the losses. I could make some profit on a consistent basis I had no plan for trades going the wrong way, I would even double up on a bad trade assuming the 5 min chart was oversold and was going to turn around. It eventually went bust, I was left confused.


FORGET IT: After my second try, I decided I had enough of this and decided to leave it, I knew deep down I never fully researched or understood trading, at the time I was doing CCIP Cisco qualification which I failed as I was not doing any study for it obsessed with stock charts. I then realised what am I doing my career is in IT and I should concentrate on that. I then got my CCIP and got a interview for promotion, didn't get the job, it went to guy previously doing job who left and came back(n).


START AGAIN OR QUIT: After my non success in promotion, I realised a couple of things if i actually got the job I would have had a 20% pay increase with 50% more stress, then I looked at other jobs in the sector with most paying less than I was already on, the ones offering good money only offering short term contracts, you will know that's no good with a mortgage and family . I now find myself stuck in a decent job with the usual outgoings. I then realised even if i got 2 promotions i would still be in a similar situation. I see clients with huge earnings, mansions, supercars etc! Some of them totally deserved some of them you couldn't believe they made it, some total bullies in their respected industry, some inherited.
This all made me change me, I then challenged myself how can I have this success?

Not in IT anyway! I would need to study for years to get my head round a CCIE and go freelance, that in itself would require luck and huge dedication to study.
Then even getting experiance to command that role would be difficult. Its really not what you know its who you know when it comes to the telecoms industry.


AFTERMATH: I have realised that either I continue my career and live within my means, I will never have the huge house I dream of or my Ferrari i have always wanted. I then went back to stock trading as my only possibility of my ambitions.

TRAINING FROM SCRATCH: I decided the best idea was start from scratch taking everything into account, from technical analysis to forecast analysis, I soon realised probably the most important technical tool ( The trend is your Friend ) :clap: I never previous paid attention to trends, this may seem hard to believe for a experienced trader, previously I believed trends were there to be broken and would trade opp on each oversold/overb scenario.

This was a huge learning curve for me.

I then started to view trend as the way to trade, I have also learned many different important factors to consider, loss taking being probably the most important factor as no matter how good you are you will still have trades going wrong. I now have a stop loss system in place which is still under review the same goes for profit taking. I have also realised trading smaller time frames to be pointless although they do serve purpose in entry/exit scenarios.


CURRENT SETUP: I know have renewed belief in my more educated setup, I now trade only on trend calculated from a 4 hour timeframe. I use a 72 period EMA as my main indicator, I also have a 10 period EMA on chart. My rule being price below the 72EMA only short trades to be entered. I also have changed traditional bar chart to Heiken Ashi bars, entry point is close high even or below 10EMA. Additional to this i have stochastic 14-3-3 and 40-3-4. My stop is previous green bar high and my stop is double the risk. I only view the stochastic as confirmation.

On my trades so far I use an average of 25 pips stop,50 take profit depending on the previous green bar high. Entry look for red bar heiken ashi or slow down of heiken ashi, combined with cross over of 10EMA on the 72EMA on the 15 mins or 5 mins time frame.


CURRENT PERFORMANCE & LEARNING: I started a demo with CMC a week and a half ago, with me trading with this discipline, 10k start currently 15k with £20 per pip rule.

Learning wise I have set up stops with my usual rules, Thursday/Friday seen me change that with entry on the ftse 100 go the wrong way after going 20pips in profit with the American market open it changed direction, I decided to lower the loss with both trades I had both got hit with the Aussie profit of £200 it was near its target at £800 and started to reverse, hitting my adjusted stop loss, sticking to my initial RR based on the 4 hour timeframe, it would have met target
price of £1k.

The ftse however was different it started good and when the American market opened it reversed this causing concern it went within 8 points of my stop it then reversed upon close of the market, CMC then takes 6 points as spread so i would be in profit by at least £400 I then assumed i would lower my RR as I felt it would open in my favour. At the opening it went up and then started to reverse in my favour. In this time I only had 15 mins to decide as I had to get to work, I had a busy day, lunchtime approached time for me to check progress, to my stock stop losses were hit and price had reversed and was getting near my target the Aussie being the first. DID I DO THE RIGHT THING?

MORE ABOUT ME: I want to be the best I can be, stock trading seems to be my best choice to do this. I always think if someone else can do it then so can you.

I am keen and no doubt have much to learn.

Best stocks : FTSE 100 & AUD/USD


I am from Glasgow UK





QUESTIONS TO BE ASKED

I would like anyone to help advise me

What can I add to help me in my 4 hour trading system, in particular can i alter my risk to reward ratio on the basis of stochastic oversold on both time frames, still taking 4 hour trend rule?

Is anything obvious wrong with my trading analysis


Long read so any input thanks.


To add if any new trader reads this then please, research and take all info in, not just what you want to hear, no matter how smart you think you are :smart:
 
M

member275544

0 0
A chart can say a thousand words, unfortunately you did the long way :LOL:
any chance in just a few words and a chart, what help you would like. After narcolepsy made me miss most of what you were saying I caught stochastic and thats a sure way of not getting good results.
I'm sure I can help, but i have a bit of ADD so its hard for me
 
 
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