14 Sep Coming up with a game plan for trading
Coming up with a game plan for trading
This is bit of a part 2 to my previous article on where do you start to learn how to trade? There I mention that if you don’t know where to begin. Just start somewhere! So, I did. Good thing is you get off your ass and get started. ‘Bad’ side is you get to make many mistakes and go on detours that could have been prevented maybe. But I don’t care. This is my journey. My path. My ‘feet’ that got to do the walking. So I’m doing it my way.
Click here for my disclaimer. It basically says that I am on my path to becoming a trader and these are just my opinions on how to approach learning to trade. Feel free to check it out and comment on it.
Here it goes…
I don’t care what anyone says. I’ll keep following my own path to become a successful trader. Yes, that means I’ll be making a lot of mistakes. Reinventing the wheel and so on. But at least I’ll own them. They’re mine to make. I started trading a paper trading account (fake money for those that don’t know). Click here to read more on how I got started and switched to a live account (real money).
It’s all about the (fake) Benjamins baby
I started off with a 2000 dollar paper trading account. The intention was to turn that into 5000 fake dollars before making the step to trading a live account. Well, that’s the thing with intentions right… We mean so well!!… When I lost half of that account (poor little fake Benjamins) I couldn’t resist the urge no longer. I had to trade with real money. Of course all the ‘pros’ on YouTube said it. ‘If you don’t trade with real money, what’s the point?’ (I’m doing a British accent, which obviously is useless when reading. Just have to take my word on how funny it sounds). And as I mentioned in that previous article, ‘everyone’s got an opinion.’ And that’s OK. Unless, it’s different than mine. In which case, I hate you!
Another strong argument was that I am super smart. I’m not like the rest. I got this. Let’s trade real money and get super rich super quick (cough) arrogant! (cough). And off I went.
I did think about it a bit though. I decided I was going to trade 1500 Euros but divided into 3. For you that don’t know, that means 500 Euros and you should really stop reading. Go play with a stick. I transfered 500 Euros into my account and look at me now. Yacht boats. Women everywhere throwing themselves at me. Cars beyond my wildest dreams. All inside a month! The secret you ask? Well, it’s THE secret. Read more on this life-changing secret here.
O.K. so there was a bit more silliness left in me. Probably still is. I’m guessing you know what happened. Otherwise… ‘Oh I see a nice stick over there!’. I lost the 500 Euros pretty quickly actually. I decided I was going to take this as a lesson. As I had intended in the first place. Learn from it. And come up with a new battle plan.
After losing the 500 Euros, I went back to the drawing board. Decided I had to learn from my mistakes I started to analyze my trades. Came up with a game plan to analyze past price action and the ‘big reversals’ and took it from there. I then moved on to looking at time cycles of charts as well as regular returning news events all of which you can read here in this article.
Same goal, different approach
Different, or should I say a more clear approach? I took from experience what I learned and poured it into a new mold. I went back to paper trading. This time a 10k account because it’s more about percentages to me than it is about the actual amount in dollars. Try telling that to the salesperson when buying a brand new Porsche huh. The aim is to turn this paper trading account into 30k before going back to trading a live account again. Why triple the account? I thought doubling it could mean I was lucky whereas tripling it gives more confidence to it all.
My 10k paper trading account was doing well and I turned it into more than 13k in 2 weeks. Which, let’s be honest, is pretty good. I know I know. It’s only fake money. But I am trading certain strategies to see if they work. Some work and others don’t. The ones that don’t work have now diminished my 13k account to less than 7k and if things don’t turn bearish soon I’ll blow out my whole account. The reason for this is that I am trading a leveraged account of 50:1 and my gains can be huge, but so can my losses.
I want to explain a bit more what a leveraged account is and why it turned against me. In order to do this I would have to explain quite a bit on how it works. I will use my personal examples to explain how it went wrong. And of course, how to prevent this in the future. So if you’d like to know more, please stay tuned for my next article on trading a leveraged account.
Thank you for reading
How did you start trading? What advice do you have for me? Anything you’d like to share please comment underneath or contact me directly.