Newbie ramblings

[wilsonj]

Hi all, this is my first post.

I am completely new to trading. Haven't owned shares either in the past. I've just started out trading AUS/USD CFDs and I wanted to share some of my experiences and thoughts.

Firstly I traded a demo account for about 3 weeks. This probably wasn't enough time. I managed to make $23K in a week though! So naturally I thought I would give it a shot for real.

I really wasn't ready for the stress of using my own money. Even in small lots. It does get better though.

I deposited $10k and am trading 10000 and 100000 lots. I have been reading everything I can about manageing my money and risk. I think I have it under control, somewhat.

Even with small amounts of money (relatively) the stress is quite high. But I like using small amounts of real money as apposed to the demo account, as it forces me to be very clear about my trades. Mistakes will cost ME money.

Some of the mistakes I have made are.

1. not making my stoploss amount the same size as my position. This was an accident, but cost me some money!

2. trading for the sake of it. NO NO. Most times I lose.

3. Not trusting my indicators. Many times I could have made really good profits had I traded.

So far I am infront, but I seem to be about 50/50 win/loss. Although that figure is somewhat distorted due to silly gambles that I just shouldn't have done. Even with small amounts.

A few thoughts........

I think I have an idea what its like to be a manic depressive. One minute you are on a high, the next low. Although I am getting better, I think.

Indicators are good, most of the time.

My stratigy

I keep it simple and just use a borringer band, MACD and CCI.
I wait for the MACD lines to cross, and watch for the BB to bottleneck. Then trade accordingly. The CCI also gives me an idea of where things are headed.

This works most of the time, and I like to go back in history and click through the candles one at a time and make decisions, and see how I went.

Sometimes the chart goes against the indicators and that confuses me. I like to watch for the start of strong looking trends, but sometimes these occur with little sign from the indicator!

I trade 15min candles, but I also watch the 1hour and 4 hour charts to get a feel for where things are headed.

OK, thats about it for now. I'm no expert by any means, and not even sure I can make it as a trader. But I am going to try, and try and have fun as well. Can't take life too serious.

I am always open to any suggestions too!

Cheers
Jamie

 

[justasx]

Thanks for sharing, Jamie. I have not yet taken the plunge because I am still raking together the shekles to have enough shrapnel to spread and manage risk, not to mention manage capital.

How did you go about learning to trade CFD's? Any particular books or other material that you found was invaluable to get you started? I'd be interested to hear.

 

[Garpal Gumnut]

wilsonj, a nice post.

My only comment is that losing a lot of money in the market concentrates the mind, so don't get put off by losses.

Don't think your invincible if you have a few wins.

Always have a stop loss.

Have a look at my blog where I lost on FCL, but got out losing not as much as if I'd blindly held.

gg

 

[wilsonj]

justasx, I found and read every article I could on CFDs. Do a quick search and you will find heaps.

Garpal Gumnut, thanks. Hey my mind is focused now!!!!! I just lost all my profit for the day, and some. I'm now in the red. Grrr I feel like the whole week has been wasted. The only thing I gained was experience. Maybe thats the best thing to get at this stage?

I think I need to be a little more strict with myself. I'm getting hooked to the adrenalin of trading. But what I should be doing is waiting for all the right indicators. Instead of trying to make back my loss quick, and just adding to it.

 

[MS+Tradesim]

I think I need to be a little more strict with myself. I'm getting hooked to the adrenalin of trading.

Once you start gambling or praying it's time to close your positions.

But what I should be doing is waiting for all the right indicators. Instead of trying to make back my loss quick, and just adding to it.

Yep. You can't "get even" with the market. It doesn't care and you will go broke first.

Did you follow your rules? Pat yourself on the back.
Did you follow your rules and still make a loss? Pat yourself on the back twice.

 

[Garpal Gumnut]

justasx, I found and read every article I could on CFDs. Do a quick search and you will find heaps.

Garpal Gumnut, thanks. Hey my mind is focused now!!!!! I just lost all my profit for the day, and some. I'm now in the red. Grrr I feel like the whole week has been wasted. The only thing I gained was experience. Maybe thats the best thing to get at this stage?

I think I need to be a little more strict with myself. I'm getting hooked to the adrenalin of trading. But what I should be doing is waiting for all the right indicators. Instead of trying to make back my loss quick, and just adding to it.

I'd just be careful with cfd's mate, they could be the vale of tears of the later months of 2008.

Too much leverage, and you are depending on jokers in budgie smugglers running cfd companies with a big sales base.

A recipe for disaster imo.

gg

 

[Sir Osisofliver]

*Shakes head* *Groans* *Shakes head*

WilsonJ.

You decided to start your trading experience in Contracts For Difference? Well my friend you have large titanium plated cohones.

Dabbling in highly leveraged products is like giving a Ferrari to a P Plater. It'll be a wild ride but will most likely end halfway inside a wall.

I'd strongly suggest if you are serious about investing in this fashion (and don't get me wrong If you know what you are doing you can make a lot of money) I'd suggest you invest in your financial future by doing some trading courses. Be prepared to spend some dollars in doing so. Try and get a trading course that actually shows you using the software that you use and does a live course. (Actually doing trades). Yes they are out there. PM me if you can't find one - I'll recommend someone to you (not me). I run them but do not wish to be seen trying to solicit in this forum.

Good Luck

Sir O

 

[Trembling Hand]

I'd just be careful with cfd's mate, they could be the vale of tears of the later months of 2008.

Too much leverage, and you are depending on jokers in budgie smugglers running cfd companies with a big sales base.

A recipe for disaster imo.

gg

GG you have made this comment a couple of times about CFD providers following the likes of dodgy brokers, opes prime etc.

Could you outline why you think they are on the edge. From my understanding this is exactly the enviro that they make big $$