My CFD Journey: Up $19 000 Past two Days

It feels like I’m printing money right now. During my first four days with trading CFD I’m up more than 12% in total with 33 000 USD in profit. I made a few mistakes yesterday where I almost lost all gains, but I stuck to my trades and they ended up with a nice profit after a few nervous minutes. Today Dax dropped more than 0.7% during the opening minutes, and I saw that the RSI and Stoch called it oversold. I entered a buy position which I cashed in quite quick. I could have left that trade open for a longer period and would have been able to cash in even more, but you have to take your profits and be happy with what you’ve done.

Here is my results so far:

 Date  Asset Order Entry Price Take Profit Stop Loss USD Bank Roll USD % Change
 Start 258 064,52
25.01.2018 Dax Buy 13268 13274 13262 6 472,52 264 537,03 2,51
26.01.2018 Dax Sell 13342 13318 13392 7 642,84 272 179,87 5,47
29.01.2018 Dax Buy 13331 13336 13313 12 508,39 284 688,26 10,32
30.01.2018 Dax Buy 13226 13233 13176 6 625,94 291 314,19 12,88

And here is how that looked:

As you can see, I’m pretty fast in and out of trades. I like to monitor my trades with full focus and be happy with a decent gain, then close the position fast.

Here is my trading rules:

  1. Only risk max 2% of my bank roll per trade.
  2. Have 0 active positions during the night (first of all, I lose sleep, second; you are charged an interest fee for leaving a leveraged product overnight.)
  3. Always trade on last month’s trend including the previous day(s). If they do not correlate, I will not trade.
  4. If one position is lost, I’ll double the amount (martingale) and do a second trade. I’ll only stop doubling after 3 consecutive losses.
  5. Do not think about lost trade opportunities.
  6. Markets to trade: Dax & Dow (minimum spread).
  7. Stay updated on economic releases prior to entering a trade.
  8. Do not have emotional ties to the money. I like to call them “points”.
  9. Only enter a position when an asset is overbought or oversold shown by both RSI & Stoch at the same time.

Questions from members:

Can you enlighten point 3? It’s unclear to me.

Point 3 says that I should follow the trend of the asset I’m trading. Basically this means that if the price has risen gradually the last month, it has a momentum upwards. And if the same can be applied looking at the last days, I should buy the asset. If it’s opposite, I should sell the asset. (Use different timeframes to get the monthly view and the daily view of the asset.)

Also read: Trend Following: A strategy revealed

Always write down your trades

I’ve forgot to mention this, but that’s also why I’m posting updates like these. First of all so you can follow my experience with trading CFDs, but also for me to write down what I’m doing right and what I’m doing wrong. This is a great way to learn from your mistakes and keep doing the same thing that actually makes you money. I’m adding that to my rules now:

  1. Only risk max 2% of my bank roll per trade.
  2. Have 0 active positions during the night (first of all, I lose sleep, second; you are charged an interest fee for leaving a leveraged product overnight.)
  3. Always trade on last month’s trend including the previous day(s). If they do not correlate, I will not trade.
  4. If one position is lost, I’ll double the amount (martingale) and do a second trade. I’ll only stop doubling after 3 consecutive losses.
  5. Do not think about lost trade opportunities.
  6. Markets to trade: Dax & Dow (minimum spread).
  7. Stay updated on economic releases prior to entering a trade.
  8. Do not have emotional ties to the money. I like to call them “points”.
  9. Only enter a position when an asset is overbought or oversold shown by both RSI & Stoch at the same time.
  10. Always write down your trades and elaborate what went right or wrong.

These rules are not “set in stone”, but I try to follow them all to the point.

I wish you a great day ahead.

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Founder of Hacked.com and CryptoCoinsNews