Hey fellow Traders!
It's my first thread on Babypips. I did not want the burden of maintaining a thread, but some of you might be able to learn from my triumphs and failures. I already learned a ton on different FX forums so I think it is only fair to give something back.
So I was thinking what the hell, let's just do it.
A little about me
I am currently 23 years old, been trading since I was 18. It's been quite a journey, I had my fair share of losses and winnings along the way, trading all kinds of strategies. For the most time, speculating was nothing but a hobby, as I had a lot of different obligations. Anyway, in the little spare time I had, I was reading and experimenting with different approaches. I tried basically everything. PA, indicators, Candlestick Patterns, you name it. Despite the limited success I had, I learned some important facts.
- My gut feeling for the market sucks
- PA does not work for me
- I need objective entries and exits, otherwise I tend to freeze
- I prefer intraday trading
Recently, I figured it would be pretty damn awesome to be able to generate 5% return on investment each week. I was doing okay so far with my live trading, so why not give it a shot? Since I know it won't be as easy as it sounds, I will try to achieve that goal with just 500$ initial investment. Since it is an experiment, I don't feel comfortable putting up more $ up-front.
Before we explore the challenge further, I'd like to disclose what I DON'T want to see in the thread.
If you think it is impossible, please do me a favor and keep your opinion to yourself. I don't care about how much professionals make each year and how difficult to achieve even 40% ROI. I simply don't. If you have nothing positive to say, this thread is not for you.
Questions about my strategy
I will not publish it. This is not the trading systems section, so I don't have to. It took me a while to develop my own method and have no intention of spoon-feeding anybody. You are probably perfectly capable of doing what every successful trader did before you. Create your very own strategy that compliments your personality.
PA Heroes / Trading ideas
Interestingly enough, almost every thread has a PA hero. I don't care about how awesome PA is, or where you think S/R zones are located. There are most likely at least dozens of PA threads on every forum. Please discuss PA away there. Also, please don't post your trading ideas here.
Create a myfxbook account
I am way too lazy to set up an account there. I did that once and it was a real pain in the ass. Plus I have nothing to prove to anybody but myself.
This is not a suicide mission. I don't intent to make 100% return each day/week. I am very well aware of the risk that kind of approach pose, therefore I would not even dare to try to achieve it.
My risk is 0.5% of my account (2.5$ in case of 500$) / trade. That is pretty conservative in my opinion. It is very unlikely that I will sabotage my account.
I will always shoot for 2:1 R:R. Ideally my profit should be 5$ / trade. I know that one should let his profits run and cut his losses short. In my view, it is partly pure BS. How on Earth would you let your profits run if you have not the slightest idea of how far the price might go? If you think you do, stop kidding yourself. In my experience, trying to squeeze every cent out of a move is stupid and will be a source of frustration.
I have a 5% goal set for each week. Once I achieve it, I'll close up shop for the remainder of the week. Of course, I might fail miserably due to my incompetence, therefore, I also have a limit on my losses. If I lose 5%, I'm done, after bashing my head in the wall a few times.
Worst-case scenario is, if I lose 200$, I'm out and my challenge failed.
- If I manage to build up the account to 700$, I'll invest another 300$.
I'll elaborate the plan more once I reached 700$.
Well, that's about it. I'll try to upload my progress each day. If anything changes, I'll let you know.
The challenge starts on 2015.12.08.
If you have any questions, feel free to ask.