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6 month money challenge

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6 month money challenge

The new years resolution

Have you ever made a new years resolution that you haven’t kept?  You start off with great intentions to do something and go well for a week or so until the motivation to keep going drops off. Friends may keep asking you about your challenge when they meet you. Politely you say you’re doing well until coming to the realisation you are never going to reach your target . It’s then you have realised you won’t fulfil your goal and “fess up” to family and friends that the target is not going to be met. I remember going through this scenario more than once especially when I was in my twenties when it was popular for friends to set new year resolutions.

Some challenge background

It’s because of memories like these that I’ve decided to set myself a challenge and make it public so that it motivates me to continue and be accountable for my actions. When you promise yourself to do a challenge the most common reason it is not fulfilled is usually through lack of motivation. Over many years I have traded the financial markets to make myself some extra income and in some years was able to trade as my sole income. Then the global financial crisis came and I began to loose confidence in myself. My trading suffered and until recently have not made any money from trading and at times became disillusioned and stopped trading. I knew something had to happen. I either had to admit defeat and move on or treat trading as a business. Although the global financial crisis was a shock to everyone world wide I know if I had continued as normal and treated trading as a business, things would have been fine. Why do I know this? The wonderful thing about the financial markets is you can go back and test your trading criteria against what actually happened in the markets.

6 month money challenge and rules

  1. To match and hopefully double my present wage on average over the 6 month period.
  2. Trade every day after assessing trade criteria. If criteria isn’t met then no trade taken that day.
  3. Give weekly updates via yoursavings.com.au
  4. Challenge to start 8th August 2014

 

I’m not presently giving the full details about the trade criteria because trading can be a dangerous pastime to the uninitiated and I don’t want to get readers  into unwanted trouble. Having said that, I’ve tried to make the trade as simple as possible and added a layer of money management, which I think is one of the most important aspects of trading. I’ll give details of both as we go along. The results I will post weekly on a points basis. Most shares or in this case indexes move on a points basis and each one point move will equal one Australian dollar.

To give you some insight into where I started with this idea, I thought I would include the chart below. This is a weekly chart covering a one year period. I tried to ignore much of what I’d learnt over the last few years and go back to basics. Is it worth trading this? How do we find out? How about counting the green bars. 31 green bars, 21 red bars. More green than red so maybe this is worth looking at?  That is as basic as may thoughts were at the time.

I refined the trade from there so we’ll see how I do over the next 6 months.

See you after the next update.

Screen Shot 2014-08-23 at 1.27.25 pm

 

 

 

 

 

 

 

 

 

 

 

 

Chart courtesy of CMC Markets screenshot.

 

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