General Info.
Hi all. I'm a 24 years old average dude who lives in Italy. In recent times something broked in me (maybe because of COVID complications lol), that huge feeling that it's impossible to go ahead in my life like a vegetable, doing stuff like home-work-home for 50 years and then you will die and that will be the end of the story of your miserable life. I'm from the lower working class with a wage of ~ 1200-1400 eur*month So, I need to move my ass and very quickly. So as I'm relatively poor but have some savings that i was able to put aside from my primary job which I still intend to keep, cause I understand that in country is very high unemployment among young people + I'm lonely wolf (don't have any major responsibilities such as family etc..)+still live with my parents, and my primary motivation is to begin to make relatively good money, considered facts above I can allow me to go wild). I've begun to consider different businesses/franchising and risks/rewards involved, i knew already that Europe is such a place where big business is frolicking, for a small one the place is off-limits and my final bet is on trading not because it has the easiest access, but because it has the highest possible margin on your risk. In the past 6 months, I was all in the theory of trading, so I read most common books and have made research. I saved up to ~50k in 3.5 years of work (practically every single penny), and I intend to gradually flow in the market up to 60% of this amount step by step as business goes well. But maybe I won't need that because of compound interest, which I will consider as I move forward. I decided to make an initial good buck through speculation on CFD leveraged stocks, that way I can still keep my daily job, and maybe further in time, I will be able to allow me to work through a portfolio, where is also intraday instruments like futures if I will see potential in me to become a full-time trader.
Business plan
Risks.
starting capital ~5k
Single trade up to 2% gross risk, 1.8% net risk. (0.2% is the room for commissions+swaps+slippage)
I decided not to do any time-bounded limitations on my drawdowns because I'm an end-day aspirant trader on a daily chart time frame and in order to relatively quickly rebound from drawdowns, I simply make risk per trade recalculations for every 10% loss from equity peak.
Viceversa for my gains, but here I make adjustments for every 20% gain in order to smother my equity.
I think there is no reason to keep more than 30k in your leveraged account, as your risk gradually grows beginning from stock gaps/black swan events to ending with a CFD dealer provider. Mentioned that, my long-term plan is to grow my account up to this sum and then begin to withdraw profits keeping the initial balance.
To further reduce my risks I will trade stocks only from spx500+nas100 indices+most popular, absolutely no penny stocks. I won't open a position right before earning report, it's not a reasonable risk, it's more like a 50/50 casino, but I will hold my position through earning report if it's already in a good profit. Entering in a position all at once, no scaling in/out. Every single trade is in Edgewonk journal.
In the 95% cases, I will only go long, but if I see that there is a bear/recession market I will go short and only on the shares with very low short float % to avoid the story as it happened with GME in recent times.
Execution.
Scanning for different ema's cross through the screener, after that I make a discretional decision ( based on " how good it looks") and enter in position. My method, which I developed through backtesting and observation, at the moment is fully graphical/technical but will add also fundamental common-sense analysis. Profits targets are staying in the room of +3-4R, but can let go a trade farther if there is a strong momentum.
Dealer provider
Using roboforex and their umstel platform
I will post reports of my journey and general thoughts at the end of every …