Let me try to put the trading change – from what we were doing to what we are doing now. At least in terms, 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 dash. 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 meters running) and now (400 meter running) is different.
So why have I made this change?
I think it’s 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 typical fund, a market dip is no problem because if you’re, let’s 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.
About 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 it’s 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:
6 am to 8 am – trading study (explicit emails and anything else)
travel to the office at 9 am
9 am to 11 am live trade
Review trades, maybe tennis and lunch
1 pm to 4 pm live trade
Review trades then travel home
9 pm (most evenings) review end of day close signals
Being full-time brings its issues, of course, such as the temptation to overtrade. Patience we have learnt is critical. 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 from your mistakes through trading real money!
I appreciate that this trading is different to what we initially considered. As we go forward, your income is a percentage; all plugged into a spreadsheet, of your input. You can, however, withdraw all or part of your initial contribution in any month.
I aim 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 every chart and trade.