Slow Trader

Tag: leveraged

  • How we are doing, June 2015

    Here are our funds as we stand. As you can see, Ferrari, which shows share trading, is up. However, Slow Trader, which shows FX (foreign exchange) trading is down.

    Snip20150603_4

    I am not concerned about Slow Trader’s position as the FX market is a difficult beast with great volatility. We are simply learning how to tame it.

    That’s not meant to be flippant. I regularly trade the FX now with over a thousand pounds a day gain. The secret is learning how not to give it all back in small chunks. That is, improving the win loss ratio.

    Our strategies are maturing and I’m confident we’ll see the FX benefits very soon.

    With regard to Ferrari, I am delighted with its progress. We were well over £16K a few days ago. The recent down trend in the market hit us but that, in turn, provides buying opportunities.

    Snip20150603_6

    Going forward, I have spoken to most of you and I get the feeling that there is no great excitement about an income fund at this stage.

    Therefore, although I will still treat the fund as income, I propose that we grow the higher investors to £9,000 each and review the situation.

    One reason to keep the fund lighter, and remember it is a leveraged fund, is my own confidence in trading a larger (leveraged) fund. You may not consider the size of the fund to be large. But because the fund is leveraged (and with the associated risks that imposes on me) – and if you compare what we are doing with a traditional fund – we are talking short term trading with the equivalent of over £100,000.

    Having said that, I feel that as we grow in experience, I am happy to expand the trading fund.

    Going forward, I will now report on the fund as early as possible at the beginning of each month.

    Regards

    B

    P.S. For those who wish to trade for themselves in shares, my next blog will explain my real time share buy information via whatsApp.

  • How is the change over to short term trading going?

    Hi everyone

    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:

    IMG_5904

    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.

    B

    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.