Let me try to put the trading change – from what we were doing to what we are doing now – in terms of athletics. At least something we all know. If 100 meters represents one day of trading (i.e. day trading) then we have gone from running the 10,000 meter race to the 400 meter race. A completely different discipline.
As a 400 meter athlete we are also reasonable at both the 200 meter and 800 meter races. And that is how we are now with trading, we specialise in holding trades for 4-days but we are also comfortable with holding trades a few days either side of this. And as with the athletics analogy, the work, discipline and mindset between what we were doing (10,000 meter running) and now (400 meter running) is totally different.
So why have I made this change?
I think its for the potential reward and control this trading method brings.
An Increase in your fund is all well and good if you’re an investor. But if you’re full-time with a leveraged fund then I feel results need to be dynamic. A small increase or even doubling the fund isn’t good enough. As conceited as that sounds, I am looking for a regular monthly income for us, not a fund.
I got hit by last years late September early December dip in the market. Both times! We were the 10,000 meter runners – we had the longer term market view. With a normal fund a market dip is no problem because if your, lets say, £5,000 fund dips 10% and comes back up in a few weeks then big deal. However, with a leveraged fund where your £5,000 invested money represents £100,000 leveraged money then any unconsidered dip is unsustainable. You have to come out early and take the loss.
With regard to trading time:
You may see, in some promotional writings on trading, statements like “earn millions in only 15 minutes a day”. The old saying ‘if its too good to be true…’ comes to mind. My experience is part time effort gives you part time results. Recently I have gone from part-time to this Monday to Friday:
6am to 8am – trading study (clear emails and anything else)
travel to office for 9am
9am to 11am live trade
Review trades, maybe tennis and lunch
1pm to 4pm live trade
Review trades then travel home
9pm (most evenings) review end of day close signals
Being full-time brings its own issues of course such as the temptation to overtrade. Patience we have learnt is key. However, we are now there to catch the early signals.
What are we trading?
Ten financial currency pairings; four of the major indices, plus gold, silver and oil; and about ten of Nick’s top companies. That seems light but its more than enough. We specialise. Over the last couple of weeks of starting this routine we have found that the currency pairings are all we have been able to manage.
Your initial capital is safe. I’ve spent my own money with the dips I mentioned. And my own money in the few weeks learning by mistakes the new method. Paper trading only goes so far, you learn by your mistakes through trading real money!
I appreciate that this trading is different to what we originally considered. As we go forward your income is a percentage, all plugged into a spread sheet, of your input. You can however withdraw all or part of your initial input in any month.
My aim is to provide a monthly amount of income for us all, regularly.
P.S. the photo is of James and myself in our office. James has joined me full-time with his own trading money. As a web designer (which he still does in the evenings) he has a great mindset for this method of trading and we discuss each and every chart and trade.