My trading journal : From 5 to 1000

[along]

thanks WaveRider

yup U r right,made a lot of mistake in the past. today I started to deposit again my account. This time I will use difference strategy, good money management and I'm going with the small trade size. I will go slow with this account, as this is for the long run, I will not focus on 5 dollars for this and I will add fund to this account from time to time and update it here

Initial deposit : 6
pair : AUDUSD / Gold

This time I will focus only with 1 pair, my favorite AUDUSD. I will also trade with gold for this account if the margin allow me to do so. This is very simple strategy, I will not use any indicator for this trade, emphasis more on money management.

C U later

 

[along]

Hi,

just want to quick update with this account, screw up my 1st and 2nd deposit (total usd11), today I deposited another usd100 as I need more space for buying more AUDUSD. currently have about 92 open trades. will let it run as long as this account can stand with the market. 200 pips for standby before this account get wipe out. I will try deposit more later, as I'm going to buy more, my target around 3000 to 5000 trades. I used to trade with this strategy before bought audchf and the result is unbelievable. . this strategy need good money management, overbought will cause u in deep trouble

I'll be back...

 

[WaveRider]

Could you outline your strategy? Are you using classic technical chart patterns? Why so many open trades? What is your money management scheme? Just curious as I follow along.

I'm working with a strategy that is essentially a daily breakout. Everyday especially during the London NY overlap primetime, the market wants to move. I wait for it to tell me which way, get in past a S/R and get out near the next S/R. I look for 20-50 pips and I'm done for the day. Today I got 30 pips in the move down on the live account (which is barely bigger than yours). I bailed early, since the move was worth maybe triple that. It's okay, I'm green for the day. With two days of pent up energy, today the bankers are looking to make something so I was anticipating a good move today. They were waiting for the move to start too and jumped in. I let the ADX, AO, and my Dinapoli MACD confirm the last 10% for me.

This morning sold EUR/USD at 1.3432 and closed at 1.3401. It's at 1.3375 and retracing up after bouncing off the Fib Support 3, which will probably be a pretty strong floor. I won't get in because the trend is down and trying to scalp retracements opposite the trend has hurt me more than helped me. I would sell a bounce off the 1.3400 for about 10 with a 10 SL. Or better sell off the 382 retr at 1.3423 since it is protected be the 50 psych level and 50 retr. TP at 1.3401 again. Or I could go back to work and make a real living!! Good luck.

 

[WaveRider]

Next

My next hurdle is to start using muliple lot/positions to allow good trades to run and mulitply profits. I've been super busy and have hardly traded or read anything forex in a couple of weeks but I'll out line my strategy. Thanks for posting!!!!!

 

[RahmanSL]

along,
bro we are basically trading the same extremely high risk strategy.

I would suggest you add in TP (no SL) on, maybe, half your trades so that at least your account balanced will be increased when market do go your way and you are not attending to your platform. I would preset TP on the upper half of your opened positions and leave the lowest ones for more profits.

My trading style is more like riding the bull. I straddle (hedge) both sides of the market and when market moves in one direction, I quickly opened up more trades and close out (scalp) the profits. When market starts reversing, I open up and close trades in that direction.

This strategy will give you fantastic returns in a very short period of time, especially during fast/volatile moving market. BUT, I also land up with a lot of trailing losing positions which require further hedging and also the largest hedged profit positions cannot be closed as it balance out those losing positions.

I try to increase the Equity to at least double the Floating losses so that I can close out all trades with the profits I want.
This has worked out well with normal market, but last week massive EUR/USD spike got me into trouble and I had to really trade like mad, making hundreds of trades in just a few minutes just to open, close, and hedge my account to avoid being Stop Out. I survived that massive spike on Wed, but the two smaller spikes on Friday took me by surprise and my account just couldn't survive that many spikes....plus, I was just too stressed out and tired to react rationally and quickly enough.

I think my mistake is in selecting the wrong currencies pair (i.e EUR/USD) to trade. I though that since both currencies are equally bad, I can make good profits on either sides and, in the beginning, I was correct as I made huge profits. But, those massive spikes, and over such short time period, really took me out.

I think you are correct that the AUD/USD is a good currencies pair to trade as I used to trade that pair exclusively. Then, for some reason or other, I started mixing the AUD/USD with other currencies pair and my account...or rather accounts...got wiped out one after another.

I shall start back on the AUD/USD next week and see how that will work out this time round....and I WILL try out your trading strategy (with that slight variation of course) to see how that works out....after all, it looks very much less stressful and hectic than my strategy which, seriously, can cause a heart attack.

Hopefully I shall be wiser by now

Alright, have a nice relaxing weekend!

================================

P/S: Attachment is how I keep track of my trading account.

 

[along]

Thanks wave and Rahman,

for waverider, it's a good question....why I open so many trades??? the answer is to maximize the swap rate, I call this strategy "hacking the swap". simple and yet profitable in a long run.

I'm buying 0.05 macro lot and received 1cent for each line per day. if I opened 200 lines, I will received 2usd per day. for example
if I put 1000usd deposit, and buying 500 lines, that will give me 5usd per day, with 400 pips standby before losing the account. that calculation is for AUDUSD. buy less if want to play safe. just imagine 10k with 2500 open trades give you 25usd per day for free, and 800 pips standby just in case the price drop. In a long run your swap can cover thousands of pips drop yet you still enjoy collecting money everyday, and when the price turn to you, you just double the amount of profit, with the pips and the swap rates. 25/day = 750/month = 9000/year. swap alone almost 100% profit in a year and can survive thousands of pips drop.

Rahman, sorry to hear that, it's a lot of money. one of the reason I play with Aussie is because their highest swap rates. this cause the pair less volatile and interesting to play. why should we throw something that give us money everyday right? long run investors are hedging their pips with the swap, they all know they will make money with Aussie, no matter where this pair go, up or down. For eurusd, I just cannot focus with this pair, to much noise and yik yacking. I skip this as it is dangerous to play. just do your best you can make it. you're a good trader. just don't give up trying.

have a nice relaxing weekend too
see yeah...

 

[RahmanSL]

Nah "along", I will make back that money soon! One thing I have learned is never to dwell on losses as it only serve to stress me out. I just learn from that mistake and move on!...also, not forgetting my broker took USD3,748.32 in commissions from me ending last Friday;yah! ...and that's over RM11k our money

Main reason I was playing the EUR/USD was because of fundamental economic health of the Euro against the USD. Both are equally in bad shape, but from my assessment, the USD is in better, or rather have to be in better shape than the Euro for the simple reason that too many foreign countries currencies and commodities (especially oil) is tied to the USD.

But all it took for the Euro to make a completely false & senseless appreciation against the USD was for a group of hair brain bankers to come up with a totally stupid and idiotic scheme to rescue the Euro, which is beyond rescue at this point in time without most of their members biting the bullet and carry out some essentially painful and long lasting economic reforms.
The resulting appreciation of the Euro made the USD to weaken which in turn make oil more expensive and which cause a lot of oil importing countries to rush to check their piggy bank to see what they have left to buy essential oil for their already poor countries....and, in some poorer countries, the cold windy winter is approaching fast making heating oil & gas absolutely essentials for survival.

Yes my friend, it’s all tied in to economics and, in my honest opinion, the European Union Euro’s days are over. Too many members' economies are too frail and fragile and too many of them do not have the “male reproductive organ” to commit politically suicide decision to make the necessary and essential economic changes.
As for the USD, for the immediate future the currency cannot be allowed to fail as it is still very much (for now) the preferred world’s currency for trades.

Yah, I will consider the AUD/USD for my trading next week, but I still cannot resist the EUR/USD as I firmly believe the Euro is going to drop like a ton of hot bricks very soon against the USD.
But, I am here to make money from the forex and so should set aside my sentiment and trade the AUD/USD.

Alright, take care and all the best!

 

[along]

wow so big meh commission, how much they charged you per lot? I think the lowest so far for ecn broker is around 35usd per lot. try this broker trader's way, the ecn account min deposit 100, the lowest in market, with commission 35usd per lot. spread for gold also very good 0.50pips only. their swap for aussie also higher compare to other brokers.

I agree with you about this euro, the just manipulating the market. One think for sure the will try to do what ever they can just to safe this euro zone from going bankrupt. so just wait and see. To continue again with this thread, I just deposit 5.9usd today, I will use my exness account. this time I'm going to use hedging with small size, try not to screw up again this account as I still need to achieve my target for this thread. I try to focus on eurusd for this account because of the lowest spread. attached is my today's trades. closed everything with profit and balance 10.8usd

Today BOA will announce their latest update on the Interest rate, actual is 4.5% and the forecast is 4.25%, maximum impact record for this is 49pips spike for last month. Will wait for this news release.

will update this account tomorrow
c u

 

[RahmanSL]

My broker charge USD7.50 round trip for 1 lot. The commission is high simply because of the high volume of trades carried out (few thousands).

Well, I have been slowing down on my trading as I have been kept busy with some upcoming project work and don't have the luxury of free time like I have those past couple weeks. Most probably too, I can only pop in here at the FPA whenever I can find the time.

Alright bro, all the best and good luck with your trading!

 

[along]

7.50usd is too expensive, should look at 3.5usd. hmmm...just want to quick update with my account. trade slowly with 0.01 lot size using hedging, increase my balance from 10.8 to 22.40usd. still have two open orders, buy eurusd at 1.3402 and sell at 1.3347. big gap will try to close it tonight.