# My Trading



## TheUnknown (17 February 2014)

So starting this thread and will be constantly updating my progress with the trades I take.  On average trades will be open for 13-15 days. Trading CFDS/Forex/Futures.

End of each month I will do a balance update with my brokers statement.

Starting balance $83,000 AUD ( Risking $3k per trade ) So pretty much trading an account that should be $150k given the 2% rule, but I have funds available at call if needed for margin.

Currently have 5 trades on 

GBPCHF
GBPMXN
Market Vectors Junior Gold Minors
Sugar
Unipolsai spa


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## beachlife (17 February 2014)

Will be interesting to see what another cfd trader is doing.  Looking forward to it.

I have seen the 2% rule refered to as a safe place to start when learing, based on how many losses in a row can be tolerated.  I reckon you will be ok at 3.6%


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## Valued (17 February 2014)

You might need to put in a disclaimer that no one should copy your trades without doing their own research. It would be a shame if someone lost money on a couple of bad trades and blames you!

The 2% rule is an interesting one. If you watch your trades closely you will get out on weakness before getting stopped out. This is reasonable when EOD trading since you can check your charts every day without having to rush. Therefore, 2% is not always 2% just as a 4% risk is not always 4%. Working out average risk per trade would be near impossible though. With some assumptions you could do it with calculus but then I would say less university math and more trading!

I use risk around 3% - 4% but at the same time it's money I can afford to lose, I won't always get stopped out since I am careful, and I can get more money since I work. The most important thing I try to do is not risk the money I need to start my business. If I risk anything after that, I could do what I was going to do anyway, just with worse food, no alcohol, and live in a crappy apartment somewhere.

Edit: oh and CFDs are basically superior to any other instrument *for EOD trading*. You can have access to all other derivatives anyway. CFDs on futures and options are always fun. Options were complex enough as an underlying though to then try to do an OTC CFD with them. You can even trend follow with CFDs since the interest won't dip into your R:R enough to make it unviable even if you hold for say 6 months (assuming you entered with a R:R of 1:4 or so). People don't do this but there is no reason why you can't. Your broker won't mind!


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## CanOz (17 February 2014)

TheUnknown said:


> So starting this thread and will be constantly updating my progress with the trades I take.  On average trades will be open for 13-15 days. Trading CFDS/Forex/Futures.
> 
> End of each month I will do a balance update with my brokers statement.
> 
> ...




Good luck!

As long as you post your trades vaguely and not put in specific entries, then i don't think there is a problem. This is just a journal after all.

Can you tell us a little about your method? Time frame? Whats your trading plan?


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## skc (17 February 2014)

TheUnknown said:


> So starting this thread and will be constantly updating my progress with the trades I take.  On average trades will be open for 13-15 days. Trading CFDS/Forex/Futures.
> 
> End of each month I will do a balance update with my brokers statement.
> 
> Starting balance $83,000 AUD ( Risking $3k per trade ) So pretty much trading an account that should be $150k given the 2% rule, but I have funds available at call if needed for margin.




Hi Unknown... based on some of the threads you've started, are you sure you are ready to trade?

https://www.aussiestockforums.com/forums/showthread.php?t=27984

https://www.aussiestockforums.com/forums/showthread.php?t=27919

https://www.aussiestockforums.com/forums/showthread.php?t=27866

Not trying to talk you down, just that there's never any rush to start trading. If you must start I'd suggest starting with a much lower risk (say $300 per trade) then increase it progressively as your account grows.

Either way, best of luck.


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## CanOz (17 February 2014)

skc said:


> Hi Unknown... based on some of the threads you've started, are you sure you are ready to trade?
> 
> https://www.aussiestockforums.com/forums/showthread.php?t=27984
> 
> ...




SKC great advice...after all sometimes it can be more of how long you survive rather than how much you make until you become consistent.


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## robusta (17 February 2014)

Being a long term investor I'm probably the last person to offer advice on short term trading but I do know a little about gambling. in my opinion if you are to gamble you must recognize that is what you are doing and only punt with money you are prepared and expecting to loose. If you are serious about trading approach it with a business like attitude and always keep risk and conservation of capital as a top priority. Sounds booring but there are not too many ways to get rich quick compared to how many ways there are to loose money faster.


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## TheUnknown (17 February 2014)

CanOz - My plan is to try and get 25% return by years end, trade only 6-8 times a month going both Long & Short.

Skc - I know only new to this but happy to give it a go at $3k per trade, i hope to replace my income by trading and getting a weekly wage i know its hard as i have already hit draw down but i will keep going and see what happens. no risk no reward.

I made a mistake by not funding the account enough at the start initially put $35k and took the first 3 trades at $1k risk on each trade, after that loaded account up with more money brang it up to $83k at which my last 2 trades are at $3k risk and..........the last 2 are the ones in heavy draw down for now.

Attached is a screenshot so far.

EDIT - balance attached


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## CanOz (17 February 2014)

robusta said:


> Being a long term investor I'm probably the last person to offer advice on short term trading but I do know a little about gambling.






this has me confused....why is a short term trader similar to a gambler and a long term investor isn't?


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## Valued (18 February 2014)

Are you long or short on sugar? I wouldn't go either right now. I looked at shorting and it didn't look like a good proposition. I also won't go long at what could easily be a reaction in the major downtrend. I decided to give sugar a pass. I have an unfilled order to go long on coffee futures though... I do like coffee


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## TheUnknown (18 February 2014)

CanOz said:


> this has me confused....why is a short term trader similar to a gambler and a long term investor isn't?




Just last week FGE went bankrupt. Many many companies go bankrupt all these long term investors who put thousands into FGE just lost it all, i hate long term. Just take a look at 08/09 many people are still in -$ from that period. Plus look at bhp and many other dud long term investments with a peanut dividend.

Markets move fast and daily as if any long term investors knows what will happen with that particular company.

Life is short.Short term or Different asset class IMO.

www.delisted.com.au


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## TheUnknown (18 February 2014)

Valued said:


> Are you long or short on sugar? I wouldn't go either right now. I looked at shorting and it didn't look like a good proposition. I also won't go long at what could easily be a reaction in the major downtrend. I decided to give sugar a pass. I have an unfilled order to go long on coffee futures though... I do like coffee




Coffee - Long ( Not in the trade yet ) 
Sugar - Long, came very close to my s/l but never hit it. Lets see what happens in the next few days.


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## KnowThePast (18 February 2014)

TheUnknown said:


> Just last week FGE went bankrupt. Many many companies go bankrupt all these long term investors who put thousands into FGE just lost it all, i hate long term. Just take a look at 08/09 many people are still in -$ from that period. Plus look at bhp and many other dud long term investments with a peanut dividend.
> 
> Markets move fast and daily as if any long term investors knows what will happen with that particular company.
> 
> ...




There is so much wrong in these few sentences, that I am tempted to print it out and hang it on the wall.


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## peter2 (18 February 2014)

The Unknown: It would be much more educational if you posted your analysis and the setups that got you into your current open trades and briefly outline your trade management strategy (eg exit at target or trail an exit stop). You don't have to be very specific about the exits.

However it might be beneficial to first post your reasons for starting this journal then the readers would know how to contribute if they wished. As more people are prepared to document their trading and trading journeys in ASF the "feel" of the trading threads is slowly becoming more supportive. I would be disappointed to see this thread turn toxic like so many similar threads in the past.


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## robusta (18 February 2014)

CanOz said:


> this has me confused....why is a short term trader similar to a gambler and a long term investor isn't?




You misunderstand me, both can be gamblers. This was more a reference to your threads on one big trade. Now you have incurred some losses and thrown more money at the account. I have done the same thing in the past. You are the only one that can answer the question, is this a rational response or a emotional one?


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## CanOz (18 February 2014)

robusta said:


> You misunderstand me, both can be gamblers. This was more a reference to your threads on one big trade. Now you have incurred some losses and thrown more money at the account. I have done the same thing in the past. You are the only one that can answer the question, is this a rational response or a emotional one?




Not me dude.... I'm Mr. Risk Averse...


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## skc (18 February 2014)

TheUnknown said:


> CanOz - My plan is to try and get 25% return by years end, trade only 6-8 times a month going both Long & Short.
> 
> Skc - I know only new to this but happy to give it a go at $3k per trade, i hope to replace my income by trading and getting a weekly wage i know its hard as i have already hit draw down but i will keep going and see what happens.




Since I don't know your financial circumstances or otherwise, $3k is just a number and you are free to risk whatever you feel comfortable with. However, if you are aiming for 25% return (that's $37.5k assuming 25% on $150k?) and 6-8 trades a month (or 84 trades in a year), that's only an average of $446 per trade. Just make sure that a stop of $3k against an average profit of $446 is indeed consistent with your overall expected performance.

Anyhow... good luck. A journal is a good thing for any new trader. And a public journal is even better. 

BTW, IG offers an online diary against trades you do on their platform. It's a great tool (although it doesn't look like you are trading with them).

http://www.ig.com/au/ig-diary


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## robusta (18 February 2014)

CanOz said:


> Not me dude.... I'm Mr. Risk Averse...




Sorry bout that Chief. I probably shouldn't post from my phone with bloodshot eyes.


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## TheUnknown (18 February 2014)

skc said:


> Since I don't know your financial circumstances or otherwise, $3k is just a number and you are free to risk whatever you feel comfortable with. However, if you are aiming for 25% return (that's $37.5k assuming 25% on $150k?) and 6-8 trades a month (or 84 trades in a year), that's only an average of $446 per trade. Just make sure that a stop of $3k against an average profit of $446 is indeed consistent with your overall expected performance.
> 
> Anyhow... good luck. A journal is a good thing for any new trader. And a public journal is even better.
> 
> ...




Trading with Saxo Capital i will eventually move to IG as they seem like the choice by everyone when not using IB.

Thanks mate.

Look at sugar go. from minus $2700 at one point to plus 800 in space of 1 hour.


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## Valued (18 February 2014)

TheUnknown said:


> Trading with Saxo Capital i will eventually move to IG as they seem like the choice by everyone when not using IB.
> 
> Thanks mate.
> 
> Look at sugar go. from minus $2700 at one point to plus 800 in space of 1 hour.




Nice job but I still stand by sugar being too risky, at least for me. I don't like trying to pick bottoms in commodities... at least not yet anyway. Coffee has gone up though which is good.


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## TheUnknown (19 February 2014)

Valued said:


> Nice job but I still stand by sugar being too risky, at least for me. I don't like trying to pick bottoms in commodities... at least not yet anyway. Coffee has gone up though which is good.




Coffee is going now.

I had wheat on but missed the entry this **** broker, just jumped straight passed my entry price.

Look at sugar now.


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## CanOz (19 February 2014)

Coffee had to be on Radge's radar, its a classic triangle on the daily. How are you determining your risk per trade with futures?


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## Valued (19 February 2014)

Coffee just shot up again. I got in long at 1847.

Your sugar trade is getting stuck on the previous high. If it is able to pass through that convincingly though, it will be quite bullish.


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## TheUnknown (22 February 2014)

Valued said:


> Coffee just shot up again. I got in long at 1847.
> 
> Your sugar trade is getting stuck on the previous high. If it is able to pass through that convincingly though, it will be quite bullish.




Look at sugar now.


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## Valued (22 February 2014)

TheUnknown said:


> Look at sugar now.




Yea. I will look to enter on a pullback likely. I didnt want to enter in the bottom of a downtrend though. Futures are a bit different to stocks so I am less keen on trying to pick the bottom.


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## TheUnknown (25 February 2014)

So account is up at $99,000 as of today, biggest performers are sugar & coffee. Who would have thought coffee and sugar could be good for you?


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## Valued (25 February 2014)

TheUnknown said:


> So account is up at $99,000 as of today, biggest performers are sugar & coffee. Who would have thought coffee and sugar could be good for you?




Too bad I can't trade milk futures.


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## CanOz (25 February 2014)

Valued said:


> Too bad I can't trade milk futures.




Why can't you trade Milk futures?

http://www.cmegroup.com/trading/agricultural/dairy/class-iii-milk.html


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## Valued (26 February 2014)

CanOz said:


> Why can't you trade Milk futures?
> 
> http://www.cmegroup.com/trading/agricultural/dairy/class-iii-milk.html




I am actually trading CFDs and IG doesn't offer milk. I can't trade Canola or Ethanol for some reason either.


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## skc (26 February 2014)

Valued said:


> I am actually trading CFDs and IG doesn't offer milk. I can't trade Canola or Ethanol for some reason either.




You can trade spot milk spread... just go buy heaps of $1 milk from Woolies, pour them into a branded milk bottle, reseal and lock in the arbitrage profit.


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## Valued (27 February 2014)

skc said:


> You can trade spot milk spread... just go buy heaps of $1 milk from Woolies, pour them into a branded milk bottle, reseal and lock in the arbitrage profit.




Yea, I know of the old arbitrage trick where you go buy something from Coles and refund at Woolworths too:


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## TheUnknown (29 March 2014)

Just an update.

It's been about 6 weeks since I started with an account balance of $83,000 AUD. Balance as of close yesterday stands at $108,000.

My best trades & worst trades are below.


Best  Commodities - Sugar $10,440

Worst Forex - EURSGD -$3,926.62

Best Forex - GBPAUD - $9,110.00 Still open

Best Stock - Unipolsai spa - $1,976.76


I never hold any stock while earnings report is due I get out before for risk and if I had stayed in with Unipolsai spa I would be up around $9k on just that share alone but I sold before earnings.


Current Trades Open


GBPAUD
Alcoa
Corn
Delta Airlines
Nat Gas

Pending Orders

Philip Morris
Intel


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