No registration required! (Why?)

Here goes...


Hi, guys!


So, having introduced myself, I want to share with you my trading strategy. For those who didn´t see my introduction, here´s a brief bio of mine:

- I´m 31 years old and been studing the markets in the past 2 years. So, 4 months ago I started to trade commodities CFDs (US Crude Oil) more precisely.


Here´s some information:

- Starting Money: €3000

- Best profit: €487

- Worse loss: -€507

- Balance: -€622

- Current Money: €2378



Well, I made mistakes, but fortunately I´ve learned! I´m much better controling my fear and my greed aswell. Some of them were...childish, plain unfucosed behavior. That´s why in those 4 months, I stoped for one and a half.


My strategy:

- (Short period) trend following;

- Chart analisys;

- Pay attention to max and min;

- 350 to 500 barrels per order - that will depend of the situation;

- Since I have not many money, I aimed for small profits, so my objective is to profit €100 to €150 per trade, with a maximum of €200 loss. As soon as I have about €5000, I´ll invest more per trade;

- I always use stop losses;

- Maximum of 3 trades per day;

- Try to keep informed about oil news (mainly at CNBC site);

- Recently I added MACD and MACD Histogram to my charts;


I learn more things, everyday.


So, feel free to comment my trading plan. It would be great to learn from you guys! :)


Thanks!
Yeah,I have that feeling, MM!

I just use my broker tools to trade, Lorn.
Click image for original size
untitled
Well Canis, I think your broker isn't offering you the proper tools to trade with.

In my experience, most brokers don't actually.

A 3rd party piece of software and data feed is what most traders go with.

I suggest you take some time to investigate what's available and then spend the time learning what the specific market you want to trade is all about. Just winging it is only going to make money for your broker.

Originally posted by Canis Lupus

Yeah,I have that feeling, MM!

I just use my broker tools to trade, Lorn.
I spoke with my broker and in fact they do not offer that tool in charts.

I thought about investings in the stock market, but in my opinion €3000 (initial money) is scarce to that. I´ll have to wait too much time to have good profits.

CL was the best choice to me because my personality is closer to trader than to investor. Plus, leverage allows me to have good profits in short term. I know that leverage is dangerous also.

For Index CFDs trading I´ve the same problem, i.e., €3000 is not enought for that. Plus, we have daily interests.

Forex it´s out of the question.

ETFs? I think I still need more money.


What do you recommend?
Are you saying your broker does not have volume in their charting software? Volume isn't a tool, it's an essential component of the market. If your broker doesn't offer that, then you are using a third rate broker and you need to switch to a real broker.




Originally posted by Canis Lupus

I spoke with my broker and in fact they do not offer that tool in charts.

I thought about investings in the stock market, but in my opinion €3000 (initial money) is scarce to that. I´ll have to wait too much time to have good profits.

CL was the best choice to me because my personality is closer to trader than to investor. Plus, leverage allows me to have good profits in short term. I know that leverage is dangerous also.

For Index CFDs trading I´ve the same problem, i.e., €3000 is not enought for that. Plus, we have daily interests.

Forex it´s out of the question.

ETFs? I think I still need more money.


What do you recommend?
No worries Canis on the double posts.

Like DRob just said you might need to find a new broker. What is the name of your current broker?

My advice at this point though is to build your trading capital up from the level you currently have. Its just too small and the trading world is filled with body bags of tiny trading accounts.



Originally posted by Canis Lupus

I´m terribly sorry. I don´t know why, but my message repeated itself when I edit...!

I´m sorry.
DRob and Lorn, thanks!


My broker is Orey.

I have plus €4500, but I prefer not to used them, as their are part of an ammount of money representing my life savings.

So, what do you suggest for me to increase my trading capital? Investing instead of trading? Stocks? ETFs?
Canis,

Never trade with life savings.

Trading is risky business. We must all realize there is a real possibility our trading capital will be lost. So the first question which needs answering is if you lose your trading capital completely, will your life change in any material way? If the answer is yes, then you shouldn't be trading with that money.

As to size of account. We have all read the stories of successful traders starting with $5000 and turning it into 1 million. Lets be real here, that is just not the norm.

$25,000 is a terribly small account. $100,000 is small.

So if you could afford to lose $25k trading ask yourself what/where do you need to be financially in the rest of your life to withstand that kind of hit.

Trading is terribly risky.

If you don't have enough money to start but you have the desire then I suggest trying to get a job at a trading firm.
Originally posted by Lorn

Canis,

Never trade with life savings.


I agree.

Originally posted by Lorn
[brTrading is risky business. We must all realize there is a real possibility our trading capital will be lost. So the first question which needs answering is if you lose your trading capital completely, will your life change in any material way? If the answer is yes, then you shouldn't be trading with that money.


No, I can afford losing those €3000.

Originally posted by Lorn


As to size of account. We have all read the stories of successful traders starting with $5000 and turning it into 1 million. Lets be real here, that is just not the norm.

$25,000 is a terribly small account. $100,000 is small.

So if you could afford to lose $25k trading ask yourself what/where do you need to be financially in the rest of your life to withstand that kind of hit.


Profiting at least 20% of the starting money is my objective. €600 (in this case) would be infinitly better that having those €3000 in an account with 2 or 3% a year...

My strategy changed. I know trade with 250 barrels (max) and if I´m profiting €100, I simply close that position (of course, if I see that the overall situation and the trend points points to greater profits, I don not close).

So, wining €100 a month, I´ll have €1200 per year.

Do you think my strategie is wrong? Please, fell free to tell me the opposite if you want.


Originally posted by Lorn


If you don't have enough money to start but you have the desire then I suggest trying to get a job at a trading firm.



Well, I think my knowledge is far too scarce to work in a trading firm...looool!
By the way, what software do you recommend to CL trading and how could I get it?

Thanks
Thanks for you help, guys!


Well, I have most of these books. I´ll research more about these matters!


Thanks