Starting All Over Again

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This year has started terribly.

Last year I managed to transform £2600.00 into £25,000 within 8 weeks. The peak in paper profits was £118,000. Back then I traded fearlessly. Using previous day’s high’s and lows as support and resistance. After the birth of my babies I dabbled once more in trading but with a small account. I blew it. In the first quarter this year, I started again with a small account I blew that too.

Well trading in such turbulent times with the Arab uprising and Japanese tragedy meant that the volatility was too much for such small accounts to trade. These account sizes were £3,000 and £2,000 respectively. Things had changed. My main business went into freefall after a major client double-crossed me. So no longer did I have a cushion to rely on. Then my daughter was terribly ill which meant my wife and I was rushing back and forth to hospital.

Then my broker changed the rules. No longer was I to have a £40 - £1.00 margins it was to be increased to £70 - £1.00. Also the maximum allowed trading size was reduced to £100.00 a tick. This was a big reduction considering the maximum I was trading last year was £750.00 a tick.

My main business was flattering, a major client was doing everything to squeeze me out of business so when I did one more deal with them it enabled me to fund my trading account to a decent size.

My ambition to create a trading arcade in West Africa took a step back.

Looking at the options available, I have decided to tough it out and try and trade remotely from home. Of course having small babies will be a major distraction. And the restrictions from my broker meant that I have decided to switch for one that allows direct market access. It’s not perfect but the bid\ask spread is tighter.

I don’t’ believe that I will replicate what I did before, but I am looking more for a gradual slope upwards. This really is a make or break situation I have been practicing on the new brokers simulator for the last six week. And in the last two weeks have been averaging between 500 – 1,000 euros per day on a maximum 2 lot. We all know that simulator trading is much much different to live markets. But "train hard fight easy"
is a good mantra.

I have decided to divide profits into the following:

1. 30% Remains in the Trading Account

2. 40% Is placed into a reserve trading account (Back UP) up to
a hopeful £25,000.

3. 30% Goes into the Household purse.

Money Management is going to be the key to success now. I want to keep an eye on the risk element of a bad trades. The size I am trading relative to my account. To this end I shall have some tables regarding the risk ratio graph for "Ruin" and another table that shows me what the daily profit means in terms of annual income. Sometimes we forget that making a mere £150.00 in a day is the pro rata amount for £40,000 a year!

I shall keep readers posted.