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12 month money challenge (January 2015)


12 month money challenge – January 2015 update

Over Christmas I had a great break and a rethink of my 12 month money strategy yet again. I know you’ll say what is this guy doing changing things yet again? I have found that even though the Wall Street index was only taking me 5 minutes a day to place a trade, it was taking up time in other ways. I needed to occasionally look at the trade in the evening especially as it was approaching US open time (11pm-12am) Aussie time, to ensure it didn’t reverse on me and loose some or all the profits.

I therefore decided to change to a morning Aussie 200 trade which is usually over before 4.30 (Aussie 200 closing time) so you can get on with the rest of your day. It is a 2:1 trade, so you risk losing one unit to make 2 units. So therefore if you put 10, $1 contracts on this trade you will either have a $200 profit or $100 loss. There are 20 working days in a month (4 weeks x 5) so you can have 13 losses $1300, and only 7 wins $1400 and still have a positive expectancy trade. I’ve designed the trade to happen at the same time every morning and to sit away from the market. By this, I mean that the order sits above or below the market and waits for movement before it is engaged. Therefore this trade can either be a Buy or a Sell trade depending on which way the market moves.

January 2015

 5/1 – 18

6/1 – 20

7/1 – (10)

8/1 – (10)

9/1 – (10)

12/1 – (10)

13/1 – (10)

14/1 – (10)

15/1 – (10)

16/1 – 20

19/1 – 20

20/1 – (10)

21/1 – 20

22/1 – (10)

23/1 – 10 close

26/1 Market closed Aust. Day

27/1 – 20

28/1 – 20

29/1 – 20

30/1 – 20

Results from chart data

Total= 98 pts 

As you can see from the above results out of 19 trades (one less for month because of Australia Day), 10 were profitable and 9 were not profitable. Even though we had 9 losses, it was  still possible to make 98 points profit. With ten contracts 98pts profit would equate to AUD$980 profit for month. To gain this profit though you have to be able to sustain the 7 straight losses between the 7th and 15th Jan, which would be $700 loss. Which brings me to the subject of trading psychology. I don’t pretend to be an expert in trading psychology and have definitely had my own battles over the years. I will instead recommend some essential reading for anyone going down the trading path. Although I don’t actually trade currencies much I have great respect for Nial Fuller, a young Sydney trader who writes brilliantly about trading. It’s his passion and business and he doesn’t spread rubbish like many others in the trading community. Here is just a brief look at some of his articles but by all means investigate further if you feel so inclined.

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