Game plan is to deposit $2000 and to start trading live. Utilizing what I have learned in the last year from my market studies. I tested the learned strategy heavily with DAX, RB, CL, GC, 6E and TF. I will observe daily and 240m charts to find direction and 60m chart to trigger my trades and to position my stop loss. I will be accountable to myself and to my journal in order to find out if it's possible to create a small income out of this. My pension is covering my living expenses my wife is still working so there will be no emotional pressure coming from that side of my life.
Last edited by blackberry; August 30th, 2015 at 03:13 AM.
If you have not traded live before, you may find that there is more emotional pressure than you expect. You may also find that your testing and studying did not prepare you for real trading. But that can only be found out by doing it.
I would say that it is a good thing that you have your living expenses covered. The odds are quite high that trading futures with a $2,000 account will not end well. But if you can afford to see that $2,000 disappear, then it may be a good learning experience.
Then, you may want to try something much less risky, and get your feet wet without jumping directly into the deep end. Or, you might do that first, so you will have a better chance to keep the initial 2,000.
With that size account, doing some trading in index ETF's, especially for something that doesn't move quickly, like SPY (S&P ETF) and a longer timeframe may be a good idea to start. (Actually, SPY can move pretty fast, too, as recent days have shown. But the leverage won't be there to magnify the effects of that movement the way it does for futures.)
There's a reason this happens, again and again, to traders who start out without having an understanding of their true risks. It is worthwhile to take stock of this before going forward.
Otherwise, trading may simply turn out to be an expensive hobby.
I'm not trying to discourage you emotionally, but I would suggest changing your plan, and start with smaller steps that may be more manageable. If it seems to you that your present plan is taking small steps and is reasonable and manageable, that is the first idea that you might want to rethink and change.
Last edited by bobwest; August 30th, 2015 at 08:56 AM.
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Thank you Bob. For you to care enough to post your opinion. I will not be able to trade live DAX or RB or since the trading margins exceed $2000, smaller instrument only that my small account and my mind will be able to hold. $500 margin, currency futures and index futures only. I tested the theory on demo since February, it is time to man up now and go hunting. The worst that can happen is to give away $2000 to the market. The best is happening is happening already. I feel as excited as when I started my first job and the world seemed filled with wonder. I view my life through lessons or blessings as the writer of my favorite blog trader feed wrote it so eloquently this morning. I'm unable to post a link to it untill I place more posts.
Last edited by blackberry; August 30th, 2015 at 10:50 AM.
Index futures are up, the CL futures is up and my account is not funded still. It is what it is. It looks as though the index futures have no more buyers left in the game. This is a sell signal, the 240 candle is topping out.