September 30th, 2008

Finally back after my summer vacation. One of the most amazing summers of my life. I feel refreshed and ready to continue where I left off back in May.

The magic word of our next month is "Positive." Positive energy, Positive numbers, Positive attitude will all play a role in the success of my account. Negative energy needs to be as far away from you as possible when you are setting yourself up to make big decisions in order to protect yourself from any type of slippage and unassociated risk's. I can't tell you how many times I have run into someone who asked me what I did for a living. When I told them that I traded Forex, their ignorance of the financial markets lead them to believe it was some type of business pyramid infomercial scam. "Oh, did you buy the infomercial program?." I never really take the time to explain to them that it is NOT a program you buy for your computer and click one button and make money. I have NO program for my computer nor did I see the infomercial they are talking about. Only charts and a schedule of Economic data that needs to be interpreted. Some people also believe it is fun. Well, it is not. It is quite boring actually. It would be fun if day traders were just picking directions and gambling, which 90% of people do and get washed out of the markets completely FOREVER. Those of us who stick around a little longer, we are bored out of our minds.

Anyhow, the misconception of what exactly our job titles entail is sometimes negative because it is so new. The creation of internet and trading the financial markets from the comfort of anywhere is such a new phenomenon that nobody has had any exposure to it quite yet. The days of the broker are coming to an end. We can now directly access online brokers with the click of a button.

Now, this next moth will deal with statistical variances. I have made some changes to my strategy that I feel will increase my overall edge.

1.) Make sure you maintain a small initial position size upon entry for each new trade.

2.) Risk/Reward ratio will be increased to 1/5. This would be optimal, but 1/3 would be profitable also. In order to achieve huge gains like these, I will need to look for tops and bottoms and be correct around 20% of the time. I think this is very doable.

3.) Look for capitulation in upward trending markets. I want to find bottoms in upward
trending markets and tops in downward trending markets.

4.) I need to pay more attention to my 5 minute chart for entries.

5.) "Positive"


We all remember the first days we stumbled upon paper trading stock trading programs online and said "what the hell are all these numbers?" Making your first paper trade and seeing the size of the account go up and down not know how any of it worked. For me, it was the summer of 05'. Probably, the craziest summer of my life though maybe not the funnest. I remember having all the windows open in my apartment because it was so damned hot. Me and some buddies would just chill back, throw down a bottle of Jack D on ice rocks or some hard vodka and enjoy our youth. This one night was different though.. I was researching the internet for different franchise's and investment idea's when I stumbled up a website for FXCM. "Download our program with game account, blah, blah." So, I did. The next week, me and my buddies would sit their staring at the computer screen while listening to the little ticker bubble sounds tick.. trying to figure out how in the hell were the prices changing and why??? Unfortunately, my buddy's got washed out of the business very soon after. However, my curiousness continued to drive me into libraries and bookstores trying to make sense of it all...

I am now in my 4th year. Because of the experiences of my 05' summer.

The best summer.. I miss summertime already.

I'll be posting my trades starting Wednesday. October, here I come!