I’ve decided to set my self a demo account challenge. I’m pretty new to trading and have just completed the School of Pipology so thought it would be nice to document my journey with this $10,000 account here. Hopefully the other traders on the forum can give me some feedback on my trades to confirm what they feel I’m doing wrong or hopefully right.
To give you some context. I can only trade part time as I do have a full time job, but I work hybrid so spend two days a week at home. These are the two days I can place trades. My initial goal is to grow my $10,000 demo account by just 10% and see where I can go from there.
My plan is to only trade EUR/USD on a day trade basis. My initial simple strategy is to check the 1D chart to find the current trend, confirm the trend on the 1H chart and find my entry, take profit and stop loss positions on the 5M chart. On the charts I’m currently just looking at trend following, and am using 3 different EMA’s set at 7, 14 and 50. I will be looking to only enter a trade when the 7 EMA is above (long) or below (short) both the 14 EMA and 50 EMA. I’m then using the RSI set at 8 to help me get confirmation to enter the trade. For a long trade my RSI needs to be over 50 but not oversold and short is visa versa.
Yes, I know this is a simple strategy, but remember I’m a beginner and the strategy will evolve, and I’m sure will be completely different by the end of the experiment!
It’s 10:20am in the UK and I’ve just placed my first trade.
To be honest I probably jumped the gun and have broken a major rule in trading, which is to ensure all your ducks are in a row. But lets wait and see what happens.
Account balance $10,000
Trade EUR/USD long, volume 0.3
Entry price 1.09584
Stop Loss 1.09367 (65.10)
Take Profit 1.09694 (33.00)
It’s now 11:00am in the UK and the trade appears to have started to go against me! The 7 EMA is now below both the 14 and 50 EMA and the candle is dropping fast.
Now it’s all about sticking to my guns, holding my nerve and hoping the price will bounce back before it reaches my stop loss
There you have it folks. My trade swung back in my favour and hit my take profit. So that my first trade complete and I’ve got a 100% success rate! It may only be a $33 account increase, but I’ll take it.
New account balance $10,033
Now I’m going wait for another trade to show itself and I’ll have another go.
Take this opportunity to develop your self-awareness. Pay attention to the number of trades you make per day and the number of consecutive days you trade before you start deviating from your plan.
It’s 12:40pm in the UK and I’ve just placed my second trade.
I saw the RSI was in my sweet spot so I opened a long trade to just scalp a tiny profit. I’m a little worried that my risk to reward ratio is not very good but I want to give myself enough breathing room before my stop loss is hit.
Account balance $10,033
Trade EUR/USD long, volume 0.3
Entry price 1.09780
Stop Loss 1.09480
Take Profit 1.09813
Man that’s the practical meaning of psychology in trading. I wish I could avoid overtrading just as you do. (I am not a pro-trader, just like you and I really have problems with trading )
I’m pretty laid back in general so learning to keep calm and not to over trade is pretty easy for me. I’m also at an age that I now take into account what I’ve actually learnt rather than think I know better!
I don’t see anything with boom tho, but it’s used mostly by scammers.