So I've been reading quite a bit and for quite a while now and I'd like to finally head into trading. If someone can look over my plan and give me feedback that'd be great!
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Aim: To make enough money so that I won't have to work anymore.
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Starting Capital: $AUD7500
Risk per trade: 1%
Commission per trade: $6 ($12 both ways)
Target per week: $150 or a 2% increase per week
Target per day: $30 or 0.4% increase per day
How will the profits be used?: I've some how found a way to live off of $50 per week (I'm a uni student still living at home). The remaining $100 will be left in the account. If I manage to generate MORE than $150 per week then only $50 will be taken out and the rest will be re-invested. If I generate LESS than $150 per week then only 20% of profits will be taken. If I happen to end the week with a loss then no money will be taken.
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What will I be trading and on what timeframe?: I intend to go long on Australian shares at first, holding for a 1-5 day period. I'll then look into shorting stocks, the US market and finally FOREX. As for timeframes, I may trade intraday as I get more screen time.
Which stocks do I intend to trade?: I will be sticking to those in the ASX top 100-200.
What systems/methods will you be using?:
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Questions:
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Tips for other newbies that are reading
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Aim: To make enough money so that I won't have to work anymore.
----------------------------------
Starting Capital: $AUD7500
Risk per trade: 1%
Commission per trade: $6 ($12 both ways)
Target per week: $150 or a 2% increase per week
Target per day: $30 or 0.4% increase per day
How will the profits be used?: I've some how found a way to live off of $50 per week (I'm a uni student still living at home). The remaining $100 will be left in the account. If I manage to generate MORE than $150 per week then only $50 will be taken out and the rest will be re-invested. If I generate LESS than $150 per week then only 20% of profits will be taken. If I happen to end the week with a loss then no money will be taken.
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What will I be trading and on what timeframe?: I intend to go long on Australian shares at first, holding for a 1-5 day period. I'll then look into shorting stocks, the US market and finally FOREX. As for timeframes, I may trade intraday as I get more screen time.
Which stocks do I intend to trade?: I will be sticking to those in the ASX top 100-200.
What systems/methods will you be using?:
- VSA (Volume Spread Analysis)
Easy to understand, hence I feel confident using it. - Volume based-Trend following
Still a work in progress. All it does is buy on the fourth day after three days of successively higher closes and volumes. It will short when the opposite occurs. I'm trying to get it to sell after the market goes sideways for 3 days (with either decreasing or equal volume, haven't figured this out yet). I still haven't done the Cover trigger.
Code:/*Formula for Average Volume*/ y=MA(Volume,10); /*Going Long*/ /************/ /*Buy Condition: Three consecutive up-thrust days with successively increasing volume*/ Buy = Ref(C,-2)<Ref(C,-1) AND Ref(C,-1)<C AND Ref(C,-2)<C AND Ref(V,-2)<Ref(V,-1) AND Ref(V,-1)<V AND Ref(V,-2)<V; /*Sell Condition: Three days where the close is sideways (+/- 5% of each other) and volume is successively decling but larger than average for the first two days*/ Sell = (Ref(C,-2)<1.025*Ref(C,-1) AND Ref(C,-2)>0.975*Ref(C,-1)) AND (Ref(C,-2)<1.025*C AND Ref(C,-2)>0.975*C) AND (Ref(C,-1)<1.025*C AND Ref(C,-1)>0.975*C) AND (Ref(V,-2)>Ref(V,-1) AND Ref(V,-1)>V AND Ref(V,-2)>V); /*Going Short*/ /*Short = Ref(C,-2)>Ref(C,-1) AND Ref(C,-1)>C AND Ref(C,-2)>C AND Ref(V,-2)<Ref(V,-1) AND Ref(V,-1)<V AND Ref(V,-2)<V;*/ - Reversals
This one was the first system that I tried to code. Needs a lot more work than the other one. I want it to buy on a reversal that spike downwards (possibly followed by upthrusts). I won't use this for shorting as I don't believe it'll be as successful as the former. Haven't figured out Sell signals yet.
Code:/*This systems aims to buy on the day AFTER a reversal has occured*/ Va= MA(V, 10); /*Entry*/ /*====================*/ /*Conditions for Upthrust Bar are just Close > Open*/ /*Conditions for Reversal Bar*/ xs=Ref((O-L)/O,-1); /*Size of the downward spike*/ xo=Ref((H-O)/H,-1); /*How close the Open is to the High*/ Buy = C>Ref(C,-1) AND Ref(O<C,-1) AND xs>=0.04 AND xo<=0.15 AND Ref(C,-2)<HHV(Close,4); /*Exit*/ /*=====================*/ /*Conditions for length of bar*/ yl=(H-L)/H; /*Position of close*/ yc=(H-C)/H; Sell= O>C AND yc<=0.01 AND yl<=0.24 AND V>=1.25*Va;
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Questions:
- Is a 2% gain per week realistic, given my starting capital?
- Can I trade $7500 intraday and still have a good chance at $30 win/day?
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Tips for other newbies that are reading
- The cheapest brokerage in AUS is belldirect @ $15 per trade
- If you're okay with opening an account with Interactive Brokers then they charge $6 per trade
CONDITIONS: You need a MINIMUM of $10000 USD HOWEVER if you're under the age of 21 then you need a MINIMUM of $3000 USD (which is about $5000 AUD). You will also be charged a minimum of $10 USD (or $3 USD if you're under 21) for minimum account activity. - Use the excel file attached to model gains using a system with diff. win % (see instructions)
