Cory2679's Log

[Cory2679 11]

Based on some advice from Dinerotrader, in jonbig04 fashion, I've decided to start my own log thread!

 

If anyone is curious about what type of approach I'm trading, just check out my history of posts over at the Reading Charts in Real Time thread.

 

I'll begin with my post from the Trader P/L 2010 thread that lead to me starting this log...

 

Well, I'm back from my little hiatus from this thread.

 

Since I began trading live the beginning of this year, I've done well week to week. However, my results have been scattered...I'll trade with small leverage, then huge leverage, then medium leverage, then demo, then stop for a while, then live again, etc.

 

Because of this, I feel like I've basically been just spinning my tires and getting nowhere. Therefore, I figured I needed to come up with a game-plan and stick to it!

 

So, here it is:

 

I'm beginning this Monday with a $5,000 FXCM Micro UK demo account that I just opened ($5,000 is the default and I can't change it...I asked). I'll be risking 5% of my account on the initial risk of each trade. I'll calculate the dollar amount for the risk based on the beginning balance of the account each week.

 

I know 5% is relatively high position sizing, but the way I'm looking at it is that if I'm having large enough drawdowns to where risking 5% per trade becomes an issue, I'm not trading well enough and need to work on that.

 

My plan is to trade this account until I have three weeks in a row net profitable. After that, I'll move back to my FXCM Micro UK live account, with $500 (the "recommended" minimum account size). I'll trade that account until I have three weeks in a row net profitable (ideally the first three weeks, of course!). Then finally, after that, I'll make a deposit to my live account to bring it to $5,000 (the maximum account size...it won't allow you to deposit funds past this point), and go from there!

 

I plan to post my weekly results on this thread each Friday.

 

I hope to be able to average 25% per week with the size I'm trading. I'm more conservatively hoping to average at least 12.5% per week. I won't even count the week as "profitable" if I have not made at least 6.25%.

 

Also, I'm going to try my best to post all of my trades on the real-time charts thread, as close to real-time as possible/reasonable/convenient. I figure it's a good way to keep track of my trades, get feedback on my trading, and to help anyone who could benefit from my posts.

 

Have a good weekend!!

[Cory2679 11]

I plan to use this thread to post all of my trades from each day, after the day is over, and also my weekly P/L.

 

The log is also open to anything else I feel like sharing...I'll basically use it as a journal.

 

I will continue to post real-time charts over at the Reading Charts in Real Time thread, but only when it's convenient and doesn't hinder my trading in any way. I will also continue to post my weekly P/L over at the Trader P/L 2010 thread.

[brownsfan019 17]

Good luck Cory and keep it going!

[daedalus 10]

Can't wait to see this develop!

[Cory2679 11]

I should probably mention...I'm primarily trading off of 15 minute charts on the EUR/JPY, EUR/USD, GBP/USD, & USD/JPY.

 

I will, however, use other timeframes to view the market from different perspectives and degrees of swing, to see major support/resistance, etc.

[MidKnight 12]

GL on the journey Cory. You mentioned this was going to be posting a game plan, but it looks more like a goal. Is this log intended strictly as your personal pnl thread in striving for the goal listed or is this more like a journal with details about trades, what one did right, what one did wrong, how can they do better etc....

 

With kind regards,

MK

[Cory2679 11]

GL on the journey Cory. You mentioned this was going to be posting a game plan, but it looks more like a goal. Is this log intended strictly as your personal pnl thread in striving for the goal listed or is this more like a journal with details about trades, what one did right, what one did wrong, how can they do better etc....

 

With kind regards,

MK

 

Thanks, MK. Yeah, when I said game plan, it's more to do with goals/milestones/consistent position sizing/etc...not so much to do with my way of trading...I'll just be doing the same old things I've been doing.

 

It will probably be more like a journal...definitely not strictly pnl.

[thalestrader 14]

Have you considered that with a 5K balance, you could halve your risk, and still reach your goal. A 2.5% risk (still heavy, but still .5% below cowboy levels) with a 10R weekly target is 25%. Now there are many who would balk at the "audacity" of a 10R/week goal. But it is achievable. Also, be sure that should you suffer a string of losses, you reduce you size as your balance decreases. Your risk needs to be based on x% of closed equity, not x% of starting equity.

 

I wish you my best,

 

Thales

[Cory2679 11]

Have you considered that with a 5K balance, you could halve your risk, and still reach your goal. A 2.5% risk (still heavy, but still .5% below cowboy levels) with a 10R weekly target is 25%. Now there are many who would balk at the "audacity" of a 10R/week goal. But it is achievable.

 

You've given me something to think about (thankfully I have the weekend).

 

Whatever I do, I need to stick with (at least for the duration of whatever "phase" I'm in of my plan). As long as I'm consistent, I'm happy. That way I can get a better grasp on what I can expect from my trading (whether it's 10R or -10R per week).

 

Also, be sure that should you suffer a string of losses, you reduce you size as your balance decreases. Your risk needs to be based on x% of closed equity, not x% of starting equity.

 

Thanks, will do.

[Cory2679 11]

Well, I've thought about it a little bit...

 

I think for phase 1 of my plan ($5,000 demo account), I'm going to stick with the 5% position sizing. I'm basing this decision on what I said here:

 

...the way I'm looking at it is that if I'm having large enough drawdowns to where risking 5% per trade becomes an issue, I'm not trading well enough and need to work on that.

 

And it wasn't that 25% was necessarily my goal in the first place...it was more like "5R" was my goal...so whether that's 25% with 5% position sizing, or 5% with 1% position sizing, it doesn't matter to me...and if I can make 10R, that's great! 50%!

 

Also, I don't mean to limit myself to 5R or 10R or whatever...my true "goal" is infinityR...I'm trading for infinite yield.

 

Although, knowing me, now that my trading is "public" and I'm beginning my new plan and everything, I'll end up psyching myself out and losing big money my first week! :o

 

When it comes time to move from phase 1 to phase 2 ($500 live account), I will reconsider my position sizing.

 

Also...on another note...scratch this...

 

I'll calculate the dollar amount for the risk based on the beginning balance of the account each week.

 

...just to be clear, what I now plan to do is calculate my position size for each trade based on whatever the current closed equity is on my account...not the beginning of the week balance.

Edited February 6, 2010 by Cory2679

[thalestrader 14]

...the way I'm looking at it is that if I'm having large enough drawdowns to where risking 5% per trade becomes an issue, I'm not trading well enough and need to work on that.

 

This is a point at which you and I would disagree, and that's fine. To my way of thinking, if I am risking 1-2% and a period of draw down becomes large enough to become an issue, then I can reasonably conclude I am not trading well enough. But if I am risking 5% and the draw down becomes an issue, I can only reasonably conclude that my problem is too great of a risk of ruin, and I cannot reasonably conclude anything with respect to my trading other than my position size is too large relative to my equity.

 

Of course, George Lane used to trade a 5K account and routinely risk $500/trade day trading the SP's, so who am I to say anything? Of course, George Lane did not start out trading that size. And George could blow 5K (not that he ever did) and could pull another 5K out of his sock drawer to re-fund his account (He taught that you should never give more than 5K to your broker and that you should bring your profits home monthly).

 

I'm not trying to change your mind. Just wanted to share a differnet way of looking at the same situation that yields somewhat different conclusions from your own.

 

 

Best Wishes,

 

Thales

[jonbig04 10]

Based on some advice from Dinerotrader, in jonbig04 fashion, I've decided to start my own log thread!

 

If anyone is curious about what type of approach I'm trading, just check out my history of posts over at the Reading Charts in Real Time thread.

 

I'll begin with my post from the Trader P/L 2010 thread that lead to me starting this log...

 

 

Awesome! I started my journal/log on day one and it really has helped keep me on track. I'm sure this thread will do the same for you. Best of luck and looking forward to following along. :beer:

[Cory2679 11]

This is a point at which you and I would disagree, and that's fine.

 

Well, if "you and I would disagree," then to me that's a red flag...you have "20ish" years experience and I basically have < 1.

 

Sooo...change of plans! I will risk 2% per trade!!

 

Hopefully I can average at least 10% (5R) per week trading that size...but like I said, I'm truly trading for "infinite yield."

 

I guess for the sake of my "plan," I won't count the week as "profitable" if I don't make at least 5% (2.5R).

 

I'm glad I made my initial post on Friday...there've been some serious changes to my plan over the weekend!

[MCM 10]

Look forward to following your trading.

 

I laughed at your comments regarding the wisdom of following some of the seasoned traders here - I feel the same way - surrounded by giants!

[thalestrader 14]

Well, if "you and I would disagree"...!

 

Its a fine thing to disagree with me, as I am frequently wrong (just ask my wife).

 

There is a difference between risking 5% of account equity if that is all you have and risking 5% of equity/trade if you are sitting on 20x's that much in available risk capital sitting in a 30 day t-bills.

 

I know this is a demo account, but your goal should be the inculcation of good habits, not reckless ones.

 

While it is true that demo trading and live trading are vastly different, the truth remains that if you cannot demo trade profitably, you will not trade real money profitably. So trade this as though it were real; and furthermore, trade it as though this is the last 5K you can spare to lose before you quit the dream of being a trader and instead are forced to take a job as a telemarketer working in a cubicle somewhere in the center of a hundred other cubicles at your father-in-law's fertilizer factory cold calling farmers who can't afford to buy from you.

 

Trading for infinite yield requires sound money management and a soild, consistently followed trading plan. Do not confuse trading for infinite yield with trading recklessly.

 

Good Luck!

 

Best Wishes,

 

Thales

[MidKnight 12]

I agree with sir Thales there bigtime. Treat the demo trading seriously. My only other comment, and take it for what its worth.....is that you seem overly focused on making lots of money right now rather than working on skills. I mean obviously you are working on skills, but in public, its mostly just about money or 'infinite yield'. This impatience is understandable since that is probably what attracts everyone to trading and it is usually the main focus of new traders. From my own experience this was a self-defeating mindset. I'm not suggesting aiming for high financial goals isn't good, but in the end financial results are the product of the skills. Focus on the skills and the money will come. I feel this is where ones documentation and attention should lie rather than with pnl. But you don't see many public journals on this stuff because it exposes themselves and is highly personal. But on the other hand, posting journal with pnl can be ego boosting.

 

Absolutely zero disrespect intended Cory, I'm just jaw flapping and tossing 2 cents in the jar.... :2cents:

 

Warm regards,

MK

[Cory2679 11]

...you seem overly focused on making lots of money right now rather than working on skills.

 

How do you figure? After all, I'm trading demo!...with the logic that if I can't be net profitable demo, I can't be net profitable live. My initial high 5% position size decision...which I've now changed to 2%...was just because of a misconception on my part of what is big when it comes to position sizing.

 

I mean obviously you are working on skills, but in public, its mostly just about money or 'infinite yield'.

 

...posting journal with pnl can be ego boosting.

 

The purpose of this thread has little to do with money...and NOTHING to do with ego...believe it or not, it has everything to do with improving my "skills!" This is a trading journal...not strictly a P/L log...and the reason it is public is so that others here at TL can follow along and that I can perhaps get feedback, help, advice, etc., in order to help continue to improve myself.

 

I'm not sure how it would be an ego booster...this is an anonymous forum...I don't know anyone on this forum outside of cyberspace. I can see maybe if I were posting P/L on facebook or something (which I'm not!)...

 

I think my usage of the term 'infinite yield' may be part of the problem...I was basically just alluding to a post thales made here with an attachment. I think reading that would help clear up a lot of the confusion...I should have posted it to begin with.

 

This impatience is understandable since that is probably what attracts everyone to trading and it is usually the main focus of new traders. From my own experience this was a self-defeating mindset. I'm not suggesting aiming for high financial goals isn't good, but in the end financial results are the product of the skills. Focus on the skills and the money will come.

 

I agree with this, but I think you've misinterpreted me if you think that this thread is focused on making a lot of money right now.

 

I feel this is where ones documentation and attention should lie rather than with pnl. But you don't see many public journals on this stuff because it exposes themselves and is highly personal.

 

It is! Read back through this log in detail...the entire reason I created the log was not to post P/L...I could do that on the P/L thread...the reason was for an area to post all of my trades!!...I want to log ALL of my trades in order to keep track for sake of review and possible feedback/advice from TL members from whom I've learned a LOT and have great respect for...and continue to learn from...

 

I think you have misinterpreted me and my intention for this journal.

 

When you asked your initial question...

 

GL on the journey Cory. You mentioned this was going to be posting a game plan, but it looks more like a goal. Is this log intended strictly as your personal pnl thread in striving for the goal listed or is this more like a journal with details about trades, what one did right, what one did wrong, how can they do better etc....

 

With kind regards,

MK

 

...I was a little confused and thought you may have missed something. I thought I had already explained...

 

...I'm going to try my best to post all of my trades on the real-time charts thread, as close to real-time as possible/reasonable/convenient. I figure it's a good way to keep track of my trades, get feedback on my trading, and to help anyone who could benefit from my posts.

 

I plan to use this thread to post all of my trades from each day, after the day is over, and also my weekly P/L.

 

The log is also open to anything else I feel like sharing...I'll basically use it as a journal.

 

I will continue to post real-time charts over at the Reading Charts in Real Time thread, but only when it's convenient and doesn't hinder my trading in any way. I will also continue to post my weekly P/L over at the Trader P/L 2010 thread.

 

Maybe part of the problem is that thus far, all I've talked about is returns/position sizing/etc...but that's just because it was the weekend...not trading, yet...I'll be posting charts, discussion, etc. this coming week.

 

I just wanted an initial game-plan for position sizing, account size, demo/live, etc., because I wanted some structure/consistency.

 

I appreciate your contribution and I'm not trying to argue...I just honestly thought you may have gotten the wrong idea from me, so I wanted to do my best to clear it up!

Edited February 8, 2010 by Cory2679

[MidKnight 12]

Hiya Cory,

 

My apologies for my misunderstanding and your reply clears things up for me - thanks!

 

Many warm returns,

MK

[Cory2679 11]

Hiya Cory,

 

My apologies for my misunderstanding and your reply clears things up for me - thanks!

 

Many warm returns,

MK

 

Thanks, but no need to apologize.

 

Please don't think I was angry or anything just because I replied with a big post...it was just an effort to explain myself to you or anyone else who might take a look at my thread...I may not have been very clear in the beginning.

 

I appreciate you taking the time to contribute to my log and hope you will continue to follow along.

[Cory2679 11]

Here are my three trades from tonight...

 

I should mention, blue line is the entry, red line is the stop-loss.

 

Not shown: dotten purple lines are a point where I'd get to break-even, and green lines would be profit targets.

 

 

^^ I pulled the ripcord on this one for -12.5 ticks.

 

 

^^ I pulled the ripcord on this one for -19.6 ticks.

 

 

And finally...pulled this one for -14.8 ticks...I was considering re-entering this one on a break of the low, but price has kind of died out for the time being...and I'm tired and going to bed soon!

 

Finished the night down about 1.26R. Even though it wasn't a great night, I don't have any huge regrets or anything...just didn't go my way!

Edited February 8, 2010 by Cory2679

[jonbig04 10]

Here are my three trades from tonight...

 

I should mention, blue line is the entry, red line is the stop-loss.

 

Not shown: dotten purple lines are a point where I'd get to break-even, and green lines would be profit targets.

 

 

^^ I pulled the ripcord on this one for -12.5 ticks.

 

 

^^ I pulled the ripcord on this one for -19.6 ticks.

 

 

And finally...pulled this one for -14.8 ticks...I was considering re-entering this one on a break of the low, but price has kind of died out for the time being...and I'm tired and going to bed soon!

 

Finished the night down about 1.26R. Even though it wasn't a great night, I don't have any huge regrets or anything...just didn't go my way!

 

Interesting, it almost seems like the support you want to see broken for your entry (thus making a LL and stopping you in) wasn't breaking, but only getting pierced by enough to stop you in.

 

Just out of curiosity, why did you exit the last one?

[Cory2679 11]

Just out of curiosity, why did you exit the last one?

 

Just because price didn't get very far before it came back through my entry...I decided to pull it and potentially re-enter if price broke the new low (which it hasn't yet)...

 

...you actually can't tell by my charts, but I did this on all 3 of the trades...pulled out before my stop-loss was hit...for the same reason...just no steam behind any of the moves before price came back through my entry...

[Cory2679 11]

Just took another loss...

 

 

Pulled the ripcord for -5.8 ticks.

 

NOTE: When I say something like, "pulled the ripcord" or "pulled it," that means that I manually exited early rather than waiting to be stopped out.

[MCM 10]

Good morning,

 

Q : Pulling the ripcord - due to no steam behind the move.

 

Sounds like a subjective feeling - or are you using some indicator as well?

How iron clad are your trading rules?

 

I only ask - because as a somewhat rookie still (1 year) of trading - I still dont trust my subjective gut. Wondering when some of the veterans will start trusting their instinct more than their screen. (getting out because "it didnt feel right").

 

Enjoying the thread.

[Cory2679 11]

Good morning,

 

Q : Pulling the ripcord - due to no steam behind the move.

 

Sounds like a subjective feeling - or are you using some indicator as well?

How iron clad are your trading rules?

 

I only ask - because as a somewhat rookie still (1 year) of trading - I still dont trust my subjective gut. Wondering when some of the veterans will start trusting their instinct more than their screen. (getting out because "it didnt feel right").

 

Enjoying the thread.

 

It is somewhat subjective...no indicators...my rules aren't extremely iron clad.

 

Basically, if I get ticked in, it maybe gives me a couple ticks of profit on my screen, and races the other way, I pull it and wait for it to come back and break the high/low...

 

Also, if, say I'm short, and I get ticked in, and price makes a low, comes up, makes a higher low, then breaks the high created between the two lows, I'll likely pull it...and what I'm talking about is not 15 minute bars...it's action you could probably see better on a 1 minute chart...I'm watching what price is doing in real time so I don't necessarily need to switch to the 1 minute chart in the moment.

 

And make no mistake, I am in the same boat as you (rookie!)...so take what I say and do with a grain of salt!!