15 Mar Small steps for a beginning trader
I haven’t uploaded anything in a while and thought to give you guys an update on my progress. I feel that I am slowly getting better at trading. The rate that I am improving is neither too slow or too fast for my feeling. I am getting more and more comfortable with the goals that I set and actually following them. I’m sure most people, rich or poor, will laugh at my financial goals but I don’t care. They are my goals. Parameters I have set for myself to gauge my progress. I’m sure that if I had not talked about my account in Euros but in percentages it would not have had the same effect. Furthermore, after having blown my account before, I thought to approach it a bit more cautious. Let’s have a look at what I did and where I stand now.
It is not the size that matters (or does it?)
So I put 200 Euros into an account and managed to drop that to about 120 Euros. Right now I am almost at my personal baby step goal of 150. Why does this not create a wow factor feeling to others than well just me?.. Losing money is easy. Making money consistently is the ultimate goal here. Every trader loses money. It’s consistently making money over a long period of time that counts. I hit 120 Euros in about mid February. After that I have been consistently trading. Consistently trading my plan that is. For the most part. I still make mistakes but I understand that the mistakes are my own for not following my plan. I am getting better at this and my small account shows that.
Size does matter. Just not the way you think it does. I look at trading my plan and slowly getting comfortable losing money. This is why I trade small and am looking to increase my trading positions with every goal I reach. So what are my goals and what are my positions?
I trade WTI crude oil only. Some brokers call it USoil. Whatever. I day trade oil futures. I started off trading the smallest contract size which was 10 barrels. Recently I started trading 20 barrels. Now that I am reaching my goal of 150 Euros I will increase my positions to a minimum of 40 barrels. This doesn’t mean I don’t take bigger positions. I do. When I feel very confident in the pattern that I see I take positions of up to 100 barrels. So that is my strategy. For very confident moves I trade 100 barrels. For anything under I trade 20 barrels. Next up is the 40 barrel contract size.
Why do I do this?
Like I said. On one side I want to get used to losing money based on my position size (this can go red really quick with trading crude oil). On the other side I want to earn the right to trade bigger. This forces me to prove to myself that I am doing something right and I have the P/L to confirm this. With my growing profit I grow more confident and am another step closer to being a professional day trader. This is my dream. I will get there. Slowly and surely.
Thanks for reading. Let me know what you think and what your progress is. Troll me. Do whatever. I hope I can find others that have decided that trading is their dream and path to follow. Safe trading.