Today I started with a LONG Position @ 1.12000
Then I hedge it with a SHORT Position @ 1.11800
But the HEDGE Trade is WRONG CALL. As I am writing this post CEST 28-SEP 13:41 Hrs, market is in 1.1170 region.
So I am exiting from the SHORT Position
I am currently holding only LONG Position @ 1.12000
To keep things simple, I have deleted the last 3 posts
[B]TRADE Update[/B]
The 1st Profit Target got hit just now. Here is the summary
[B]TRADE Update[/B]
Market touched 1.12100 and became BEAR TREND. So here is my TRADE Summary
[B]Trade Update[/B]
The 1st Profit Target got hit while I was sleeping. Here is the Trade Summary
[B]Completion of Testing Phase[/B]
BY touching 1.11700 market became BULL and I exit from TRADE No.2. With that the Testing Phase is now completed
Here is the Summary of Testing Phase
[B]Game Plan[/B]
The primary objective is to earn US$5000 every month by trading Forex.
I forecast capturing 100PIPs per week (400 PIPs per month) on the SPOT EURUSD counter using my trading system
I must capture 400PIPs per month on a consistent basis without losing my capital in the process. That means the trading capital must come from the market itself. In other words I must start with the barest minimum, which in this case is 0.01 contract and progressively increase the betting size
1 contract = US$100,000
0.01 contract = US$1000
Every time I enter into market arena I bet US$1000. Actually my broker takes US$10 from my account as security deposit and place US$1000 bet on my behalf. May be the broker is not actually placing US$1000 and enjoys some leverage from the 2nd tier broker above. So on and so forth it goes all the way above.
So I am riding a leverage of 100 and I don’t know what kind of leverage my broker is riding
Forex is OTC (over the counter) compared to stocks and its derivatives which is traded in a single location. So when I bet LONG with my broker and some other bet SHORT with the same broker, it got cancelled in the broker’s server and the remaining left over is combined into one big trade and sent to the 2nd tier. So on and so forth it goes all the way above
For example my broker has 100 clients and everyone participate in this betting game. 53 of them bet LONG and 47 of them bet short. The 47 of SHORT got cancelled with 47 of LONG at the broker level and the remaining 6 LONG combined into one single LONG and sent to the 2nd tier broker and the same story repeats there, every milli second
To reach my primary objective, I must sit at the 1 Contract betting table
The journey starts at the speed of 0.01 and the speed increases by the same amount until it reaches the final velocity of 1 Contract and all the while not got killed in the process
I am going to START this journey with US$200 and 0.01 Contract Trade size. Assuming I lose my entire equity (US$10) every time I trade, this capital would last me for roughly 20 Trades. If I want to maintain the same comfort level I must have US$20,000 worth of chips when I am sitting at the 1 Contract betting table. However as the journey continues I’ll have more trades done and this will give me an idea on what is probable. What this means is, even though I start with a trading capital of 20 trade worth, I will eventually keep only 10 trades worth of capital in my account
So, starting at US$200 I must reach US$10,000. Once reached, I can withdraw US$5000 every month
With this big picture in mind, I start now and the target for the OCT-2015 is to capture 400PIPs
Assuming everything goes well, how long this journey will take to reach my destination?
Well, to forecast that I need OCT-2015 trading data. So boys and girls at the 0.01 betting table, here comes my trading system
[B]After 7 Days[/B]
I am starting with US$ 177.70 of REAL MONEY in my account
Coming week also I am going to bet 0.01 contract only. I need to observe the PIPS capturing consistency
Here is the summary
