Would this Make Money

[mark69]

Hi Everyone.......

I am very new to this whole area of spread betting etc and I have only got as far as paper trading. Could one ( or more ) of the more experienced traders tell me if I could have made money
with my performance so far if I came out into the real world.

Since the 1/5/2003 up until the 13/6/2003 I have made a 755 point gain on the DOW spread over 11 paper trades that have qualfied as either a buy or sell signal.

Is this Good ? Bad ? or Indifferent ?


Please help if you can

Regards

Mark

 

[Helenqu]

Sounds great Mark,

Now try the system at 1p a point with Fins

 

[2468steve]

Mark69,
that is a decent return,well done.Although I would not like to dissuade you from the merits of paper trading I believe it is a different game alltogether when it comes to trading your own hard earned.
The psychological and emotional aspects of trading can only be handled and dealt with this way.
Start with small stakes and develop your system,learn about yourself and how to deal with real profits/losses.
Good Luck

 

[Skimbleshanks]

As Helen and steve2468 have said, you have to take the next step - pressing an actual button.

Finspreads is great for this because for the first 8 (?) weeks you can trade as low as 1p a point, and after that it is 50p a point minimum. When you physically have to commit yourself to a real live trade, all sorts of emotions kick in - this is the tough part of trading. If you can overcome the fear and greed you will feel (yes, even at 1p a point) then you are well on your way as a trader.

It sounds as if you've found yourself a nice little strategy, so now you need to trade it and discover why real trading is a lot harder than paper trading!

Don't let your ego get the better of you - don't think that we're messing around when we suggest 1p a point. Try it and see. If you can trade profitably over 10 trades, then raise your bet size just a little. If you go all jelly-like and wobbly, continually check the screen to monitor your trade, grip your mouse tightly, etc etc, then you'll know that you have to spend more time on overcoming the psychological aspects before you go on.

Trading is all about taking two steps forward, one step back. And on other days it's about taking one step forward and two steps back. :cheesy:

 

[oatman]

Sounds good, however, we've just had a bull run. Would you or your method have behaved the same in a bear run?

Good luck

 

[mark69]

I have tested it with historical data and it seems to work ok when a buy / sell signal is generated.

Thanks for all your feedback

 

[Skimbleshanks]

Ahhh ... backtesting. Forward testing is the real test, because that is stuffed full of emotion. Will you or won't you press that button, and do you have the power of conviction which is sufficient to make sure you do, regardless of everything else? That's the real test (unfortunately).

But do let us all know how you get along, as I'm sure there are hundreds of other T2W members who are going through the same stage as you - and hopefully they can chip in with their experiences too.

 

[reddragon]

Hi,
i agree totally with what everybody has to say about the
different emotions which KICK IN when you actually start
to trade with real money. Just remembered this from my
schooldays Q: Definition of pain ?
Answer: Sliding along a razor blade and using your balls as
brakes !!
It kinda hits the nail on the head.

 

[ChowClown]

...I echo Helen, Finspreads is a good step forward to trade your strategy at low risk. I jumped straight into SB the DOW after a few weeks of successful paper trading and was promptly roasted...I learnt basic lessons the hard way ie, use a stoploss and 'the trend is your friend'.

I devised a new strategy, using Fins at low stakes for a while to regain confidence and now moving forward profitably and trying to learn and soak up as much as possible from people here - the site is a fantastic library of valuable info and experience to draw from.

It would be great to see your progress in a Journal when you're up to speed.

 

[Skimbleshanks]

Q: Definition of pain ?
Answer: Sliding along a razor blade and using your balls as
brakes !!

I read that, then noticed ChowClown's avatar on the post which followed - looks to me as if the avatar sums up the experience nicely.

:cheesy: :cheesy: :cheesy:

 

[jpwone]

When penny trading try not to get into the bad habits of not taking stops and adding to losing trades. It is very easy to let your discipline slip when penny trading. Remind yourself constantly that the purpose of penny trading is not to make money but to learn how to trade and make good trading practice a habit. You are practising the execution of trades to your plan (entry and exit) and if you have losing trades they are expected and to be executed as well as a winning trade.

Rule 1
Don't add to a losing trade
Rule 2
Take your stops
Rule 3
See rules 1 and 2

Good luck

 

[rglenn]

I agree with most of the comments here.

I would just like to add that real trading is necessary so that you can take into account the spread bias that may go against you.

This cannot be accurately determined when you are paper trading.