Well, Big Mike and others say its important, and as Im serious about what Im doing in looking into Day Trading I guess Id best just take the advice.
Im probably doing this far too soon, after all Im not even trading yet in fact I may never trade at all if my research leads me to conclude that I shouldnt or cant but if I do get to trading, then it will be a good habit to have.
What can come of this Journal at this early stage? I honestly cant imagine that anything can. Im not looking for anything in particular from anyone, theres more than enough on the site for me to work through for a year or more before I even start to sim a method.
I guess maybe the process of recording what Im doing from right now might help me to think through and structure what I am learning, or trying to understand.
I dont expect anybody to take any interest in this at all. It really is for me, I guess, at the moment. If youre out there looking at this then I thank you for getting this far but Id appreciate it if you would keep me in mind and come back in maybe 3 or 6 months when it might be a more worthwhile Journal (if Im still here), and please help me out if my ideas at that time are going a bit, or a lot, awry.
This first entry is quite long, most future ones will be pretty much bullet points I think, as I need my time for research when Im not doing other domestic stuff.
The story to 05th February.
20th January 2016 - saw someone on a TV programme trading from a couple of laptops. Dont know what kind of trading they were doing but it lit a lightbulb in my head.
Googled share trading and quickly came across Day Trading. People relating their experience of it, including what vast amounts they had lost.
Someone was doing it part-time, which is how I will be doing it, as I have a full time job.
The principle of trading for a few hours a day and closing positions at the end of it really does hit the spot bigtime.
Read a couple of basic books since then, made notes, got them in order, read them again. More on the way this week. Getting to grips with the jargon, principles etc etc. The very basics.
Came across Big Mikes site..wow, what a find. Spending a lot of time on it.
Before finding this site I had a rough Plan in place and the germ of an idea for the starting point of a trading method.
Rough Plan:
6 months of research, then download trading software.
6 more months research and getting to know the software. Backtesting and testing on live data.
Go to live trading only when completely at ease with the trading method.
No deviation from the Method for a period (period yet to be defined), then only planned development.
Objective breakeven or slightly better for the first 6 months or so of live trading, whilst getting experience. After that, I dont know yet.
My approach to life generally is to simplify wherever possible. With this in mind
Trading Method principle:
Use a Range Bar chart, see if that alone will suffice.
Buy when two bars consecutively rise.
Sell when two bars consecutively fall.
Having been on the site for a week now, I would add the following to my (outline) Method:
Mikes method of using three charts appeals, to assess the market movement.
Depending on what the markets doing, buy when two bars consecutively rise
Maybe add a volume indicator to help assess whether the 2-bar rise is the right 2-bar rise to enter on.
The E-mini S&P500 might be the one for me. I want a product with leverage.
Its widely traded, liquid, its on the CME so I could trade it in the evening UK time. Mornings are not good for me. Must work to my strengths.
06th February 2016
Right, I had better find one of Mikes webinars.
An Afternoon with Big Mike should fit the bill, I have an hour or so.
How long? Three hours? Jeez I cant sit through that lot, Ill have to go bit by bit.
So I sat through the whole thing. Listened riveted to Mike getting croakier and my backside getting more sore by the minute. …