It's been a week or two since I have written on here and not much has happened but I shall explain anyway! First off, I hope you all had a good Christmas and had a good few days relaxing and stuffing your faces - it was a nice break to have the markets closed on the weekend, then open for just a day before closing again and then open just periodically since due to weekends and in a couple of days, the New Year!
Anyway, the weekend is here right in the middle of the final days of the Fiscal Cliff countdown which I know many are worried about, my plan is simply to wait until something is mentioned and then jump on the trending bandwagon rather than try to pre-empt a move and potentially get it wrong!
The important bits recently: before Christmas I set myself a target, 2000 USD by the 25th Dec, which required me to trade my way on the GBPUSD exclusively up to a profit of around 412 USD in 11 trading days (deadline was set on the 25th but that was not a trading day). I was able to trade my way to about 1695 USD in the first five days which on such a small account was a relatively good profit - just over 100 USD was not bad! I was confident going into the next week.
The markets became more volatile but I was able to use this to my advantage by trading bigger positions - as my balance had increased it made sense to increase position sizes to maintain proportionality. Positions opened grew to 10, 20, 30 and in one case 50 units in size. I was able to get from just under 1700 USD to 1978 USD within three days. At this point I decided to stop because Christmas was in under a week, I wanted to go and see friends and figured it would be a good time to stop - at a high point! So while I did not hit my final target, I hit all others - in 11 days of trading I had gone from 1588 USD to 1978 USD. I have not worked out the maths for this or the profit per trade and the percentages of acc balance made per day etc but it was significant for a small account.
During this ride though I often had several "losing" positions open at a time because I was making occassional hasty and wrong decisions, trading badly (fortunately only on small positions). I would make smarter decisions on bigger positions. I have decided to start again from approximately 500 USD (as of Boxing day) with a new strategy that a few others I know use - essentially, watch the market and see what news is due, then open a position at a peak or trough if possible, slightly larger than usual but only have that one open at a time - waiting for it to hit the profit target before opening another position. Trading closed yesterday (Friday 28th) and I was on 603 USD. That's 100 USD profit in a few trading days - this seems to be a good strategy...
I hope all of your trading and or holidays have been relatively good and you are well rested for the next year of it! I have written another chunk today regarding investment and my view of it. Give it a look and as usual, you can tweet me @fxamateurtrader or e-mail me fxamateurtraderuk@hotmail.co.uk
Thanks very much for reading, I'll keep you informed and in the know!
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