My CFD Journey: Up and Down like a Yo-Yo, 244 000 USD in Profit
Wow the markets are bouncing around. When you think it will turn negative, the market jumps in the opposite direction with 50 points. I had 150 000 USD in profit this morning when I took a break. Then I was back trading this noon, and everything went sour. I need to understand the market better. When it’s chopping up and down with no clear trend, it becomes almost impossible to trade. I have to be able to stop trading during these wild fluctuations. I kept losing money and was down 244 000 USD going in and out of losing trades. After a while, I was able to see a trend forming and I felt very comfortable that the markets were heading down. I shorted Dax at the right time (see image below) with 20 million euro (leveraged). I made up all my previous mistakes. I then did some quick trades with Dow Jones and added some more profits to my bank roll.
I find it easier to trade when Dax opens and when Dax closes, same with Dow Jones, as then you might be able to spot some clear trends that will help you win the day.
|Order||Entry Price||Take Profit||Stop Loss||USD||Bank Roll USD||% of Start Cap.|
|Day 1||25.01.2018||Dax||Buy||13268||13274||13262||6 472,52||264 537,03||2,51|
|Day 2||26.01.2018||Dax||Sell||13342||13318||13392||7 642,84||272 179,87||5,47|
|Day 3||29.01.2018||Dax||Buy||13331||13336||13313||12 508,39||284 688,26||10,32|
|Day 4||30.01.2018||Dax||Buy||13226||13233||13176||6 625,94||291 314,19||12,88|
|Day 5||31.01.2018||Dax||Buy||13217||13230||13187||26 474,06||317 788,26||23,14|
|Day 6||01.02.2018||Dax||Sell||13291||13265||13327||10 834,58||328 622,84||27,34|
|Day 7||02.02.2018||Dax||Buy||12797||12825||12772||72 314,97||400 937,81||55,36|
|Day 7||02.02.2018||Dow||x||x||x||x||−340 000,00||60 937,81||−76,39|
|Day 8||05.02.2018||Dow & Dax||x||x||x||x||353 333,33||420 000,00||62,75|
|Day 9||06.02.2018||Dow & Dax||x||x||x||x||236 933,20||656 933,20||148,33|
|Day 10||07.02.2018||Dow & Dax||x||x||x||x||278 933,47||935 866,67||243,84|
|Day 11||08.02.2018||Dow & Dax||x||x||x||x||212 533,33||1 148 400,00||303,39|
|Day 12||09.02.2018||Dow & Dax||x||x||x||x||272 266,67||1 420 666,67||387,68|
My trading rules
I must admit that I do not follow these rules all the time. I’m now trading with these rules including my intuition. I might slow down and get back to following my trading rules better. For now, I’m happy though.
- Only risk max 2% of my bank roll per trade.
- 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.)
- Always trade on last month’s trend including the previous day(s). If they do not correlate, I will not trade.
- 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.
- Do not think about lost trade opportunities.
- Markets to trade: Dax & Dow (minimum spread).
- Stay updated on economic releases prior to entering a trade.
- Do not have emotional ties to the money. I like to call them “points”.
- Only enter a position when an asset is overbought or oversold shown by both RSI & Stoch at the same time.
- Always write down your trades and elaborate what went right or wrong.
- Never trade after you’ve said you are done for the day.
- Never bet on a rebound when the prices are falling or rising sharply over a longer timespan.
I wish you a great weekend. Now it’s sushi time for me and my family.