Hey everyone I am a young investor at aged 19 I have been investing in shares for only about 6 months with relatively good sucess ( about 20 % in 6 months) . I have educated myself heavily on candle stick charting, technical analysis as well as anything I can get my hands on.
I opened up a CFD account with CMC markets and today I had my first trade.
I managed to make $150 through using rougly $200 leveraged 95 % to buy $5000 worth of Paladin shares. I managed to pick a swing both ways. My intial entry was a short position then a long positions. The below graph is how i executed the trade.
I know using leverage is very dangerous and I am going to make sure I always use a stop loss and a guaranteed stop loss if going overnight on the position.
I just thought I woud share my first trade with everyone and get some feedback.
nat
29th-December-2006, 03:46 PM
Hi there, looks ok trade to me, if planned the trade and traded the plan then excellent work.
Wow only 19 wish id started that early but better late then never,Nathan
Fab
29th-December-2006, 03:57 PM
Hey everyone I am a young investor at aged 19 I have been investing in shares for only about 6 months with relatively good sucess ( about 20 % in 6 months) . I have educated myself heavily on candle stick charting, technical analysis as well as anything I can get my hands on.
I opened up a CFD account with CMC markets and today I had my first trade.
I managed to make $150 through using rougly $200 leveraged 95 % to buy $5000 worth of Paladin shares. I managed to pick a swing both ways. My intial entry was a short position then a long positions. The below graph is how i executed the trade.
I know using leverage is very dangerous and I am going to make sure I always use a stop loss and a guaranteed stop loss if going overnight on the position.
I just thought I woud share my first trade with everyone and get some feedback.
Good one. I am not an expert on candle stick but I would be interested to know what they tell you about PDN in the short term as I bought some PDN warrant today unfortnately for me I picked them at the high of the intraday.
I believe PDN can only go up but in the short term I am not too sure it can go as hard as it has gone in the last few days.
PDN is an incredible share and U fever is far from being over in my opinion :)
professor_frink
29th-December-2006, 04:15 PM
Young Gun,
would it be possible to repost the chart with times on it?
What kind of timeframe is it we are looking at?
Cheers
Young Gun
29th-December-2006, 04:19 PM
Sorry about that, this is a stupid attached rule where it has to be smaller than a certain resolution and I had to chop it down. This chart is over a 2 hour time period from roughly 10:40 to 12:30.
Young Gun
29th-December-2006, 04:21 PM
Good one. I am not an expert on candle stick but I would be interested to know what they tell you about PDN in the short term as I bought some PDN warrant today unfortnately for me I picked them at the high of the intraday.
I believe PDN can only go up but in the short term I am not too sure it can go as hard as it has gone in the last few days.
PDN is an incredible share and U fever is far from being over in my opinion :)
Personally I think PDN is a little over price the stock has risen over 15% in the past week and i think it wouldnt be unlikely the stock falls 5 % or more. However if your investing long term its another story
x2rider
29th-December-2006, 04:32 PM
Nice Young Gun
It does set you off on the right foot to be able to get a winning trade for the first one.
Are you purposefully not holding overnight or did you just chose to get out on that last candle?
I managed to get into PDN yesterday 4 times in about 8mins, pyramiding each time. I am holding a bit more than intra day though :)
Another strategy that I use for a solid gain is to trade the sectors. The indicator says to go long when the 10day moving average crosses the 30day moving average and then to go short when the 10day crosses the 30day. This is not a intraday thing although it could be. Set a tight stoploss of about 3 or 4 % either side of the entry.
Just trade the sectors that are trending and try and keep away from things that are crabbing.
If you want any more info drop me a PM.
Cheers martin :)
Young Gun
29th-December-2006, 04:37 PM
Hi Martin,
I choose not to keep an overnight position because I would prefer to monitor the stock myself untill I build my confidence up. Furthermore I think that its easy to become lazy ie miss out on important news or announcements.
But I am looking at going short on Paladin as my next move I think its looking a little sluggish, whats your throughts? (as in for a couple of days trading length)
Also is there anyone that trades the UK/USA markets? I can only trade ASX during holidays however I am looking for markets that are open after hours. Can anyone point me in the direction of some good stocks to trade ie blue chip and on what indicies as well as any websites that have the timezones etc?
x2rider
29th-December-2006, 04:48 PM
hi young gun
It will be interesting to see how it goes overseas tonight. With the cigar creek mine delayed it will be in a good position next year. There is definite support at $8 but with all the news about U coming from Howard the over trend has to be up.
Would of been nice to see it get over $9 and stay there but maybe next week.
Cheers martin
professor_frink
29th-December-2006, 04:49 PM
sorry about that , the is a stupid attached rule where it has to be smaller than a certain resolution and I had to chop it down. This chart is over a 2 hour time period from roughly 10: 40 to 12:30 .
Cheers.
Nice work today. Hope you keep it up :)
scsl
29th-December-2006, 05:19 PM
Young Gun, I'm very impressed at your foray into CFDs. I think it's a huge jump - from investing in shares to daytrading stocks via CFDs. And what a successful way to start too! Well done mate.
I'm also 19, and in a way, in the same sort of position as yourself. I've been investing in shares for two years now and started trading CFDs in April this year. However, I have yet to enter and exit CFD positions on the same day. The shortest CFD positions were for about 1-2 weeks, with the majority open for more than 3 weeks.
So have you previously bought/sold (traditional) shares intra-day? And did you open a CFD account for the sole purpose of intra-day trading? Please continue posting your trades as they come.
scsl
29th-December-2006, 05:52 PM
But I am looking at going short on Paladin as my next move I think its looking a little sluggish wats your throughts ? ( as in for a couple of days trading length)
I think PDN is currently overbought - but you never know with a stock like this. What'll probably happen is that the day after I short it, it'll jump something like 5-6%! Looking at today though, looks like PDN had buyers willing to get in.
Also is their anyone that trades the UK / USA markets , I can only trade ASX during holidays however I am looking for markets that are open after hours. Can anyone point me in the direction of some good stocks to trade ie blue chip and on wat indicies as well as any websites that have the timezones ect .
I trade in the US/UK markets, but there are only two stocks I'm covering atm. Google Inc. (GOOG) was one of the first trades using CFDs and I've since done several long/short trades. Currently long - entry at $478.00. I'm not in a position to comment (as I don't daytrade) but I'd say that it's not a bad stock to daytrade. I've seen it drop faster than a stone in water e.g. it often loses $2-3 in a few minutes.
And about a month ago, I went long the UK BHP shares (BLT). I plan to hold for at least a few more months.
Regarding timezones, if you're in VIC, NSW, QLD (i.e. Eastern timezone), the following will help you. The UK markets open at 8am (for us, this is 7pm), while the US markets open after midnight our time: Nasdaq (listed stocks) midnight, Dow Jones 1am. Daylight saving starts/finishes will change this.
Fab
29th-December-2006, 06:09 PM
I think PDN is currently overbought - but you never know with a stock like this. What'll probably happen is that the day after I short it, it'll jump something like 5-6%! Looking at today though, looks like PDN had buyers willing to get in.
this.
Yep I have to agree I think PDN is overbought that is exactly why I bought some more PDN warrant today. Last time I thought PDN was overbought it was at $1.80
Young Gun
29th-December-2006, 06:10 PM
Hi Scsl,
I havent done intra day trading before or any other longer trades. The reason I prefer to intra day trade is because I prefer to trade the market at a given time frame and I feel like I can get a better grasp of the trends and also feel more in control if I invest only for a couple of hours at a time
Young Gun
5th-January-2007, 01:43 PM
I have had another couple of trades so far most of them exiting with a little profit however not much. I think the main thing I have to do to develop myself is stick with one position because at the moment I am tending to jump in and out which is useless when only entering into positions with $5,000 - $10,000.
I have started to up my money a little to around $8,000 as I found that with $5,000 the commision was eating away at any movements.
Two of my favourite stocks I have been jumping in and out of are zinifex and paladin. Both high volume and are ver volatile stocks jumping from +2 % to - 2 % midway through the day. My best trade so far was going short on zinifex in the following situation.
Entry Price - $17.85
Exit Price - $17.55
Value $8,500
This movement gave me about $150 taking into account brokerage and spread ect. I was actually very lucky because I was going to exit out of the position and my exit order was about to go through and my internet connection died. I then had to wait about 10 minutes before getting on and my position had increased about $200 in profit which is pretty significant considering I was using a margin of $400.
Young Gun
11th-January-2007, 08:34 AM
For those of you that are interested I am entering into my first medium term CFD trade today.
I have decided to go long on Lihir Gold once it hits $2.83. The price is currently at $2.80. Having owned this stock previously and wathcing it over a period of time its noticable the stock rebounds up and down like a yo yo everytime it hits the sub $2.70 point and the jumps back up to $3.00 ish.
I thought id have a bit of a punt on this and see how I go. If the share reaches the price of $2.83 a trade for aprox $8,000 will go through on a long position. Ill keep you guys updated.
wayneL
11th-January-2007, 08:40 AM
19 eh?
I wished I'd started at your age guys.
Go for it, be smart.
Cheers
rub92me
11th-January-2007, 09:11 AM
19 eh?
I wished I'd started at your age guys.
Go for it, be smart.
Cheers
I feel very OLD all of a sudden. Young Gun, interesting that you moved so quickly to intraday trading, which is a lot more difficult than a longer timeframe. However you are taking care of risk I believe, so all the best!
Young Gun
11th-January-2007, 09:20 AM
I started on intraday trading and I believe intra day trading is alot easier than holding a position overnight for the following reasons:
- Holding overnight means you have to pay interest
- Holding overight means your succeptable to any price annoucments / trading holts
- Quick changes in setiment
- You dont have as much control over the stock
- You have chances of getting caught with dividends in a position
- Often their is no guaranteed stop loss
- Especially more difficult with companies that trade before the market openning.
If you go with intra day trading and you go with the trend, "let it be your friend" its alot easier. However if you go against the trend with an intra day trade its like puting your balls in a vice!!! Its not pretty and it hurts.
mswiggs
11th-January-2007, 09:28 AM
Nice work! Good luck with the future, good to see you having a crack at such a relatively young age.
coyotte
11th-January-2007, 09:48 AM
In the long run if trading Ozz stocks U will probably find IG better than CMC.
CMC better for International though
Cheers
Ants
11th-January-2007, 10:50 AM
Good onya Youngun. Give it a go keep the risks small and you will gain knowledge and skills. Keep us informed as I would like to learn from your practice. Cheers :)
Fab
11th-January-2007, 11:23 AM
For those of you that are interested I am entering into my first medium term CFD trade today.
I have decided to go long on Lihir Gold once it hits $2.83. The price is currently at $2.80. Having owned this stock previously and wathcing it over a period of time its noticable the stock rebounds up and down like a yo yo everytime it hits the sub $2.70 point and the jumps back up to $3.00 ish.
I thought id have a bit of a punt on this and see how I go. If the share reaches the price of $2.83 a trade for aprox $8,000 will go through on a long position. Ill keep you guys updated.
What type of trading technique are you using for intra day. I only invest mid to long term but would not mind having a go at CFDs. The problem is that my understanding is to make it profitable you need to make at least a 2% gain
Young Gun
11th-January-2007, 11:34 AM
What type of trading technique are you using for intra day. I only invest mid to long term but would not mind having a go at CFDs. The problem is that my understanding is to make it profitable you need to make at least a 2% gain
I look for reversal patterns and trends on a 3 - 5 minutes daily graph, I havent really got my trading stratergy down pat.
Yes its true trading CFD's you do need aprox 2 % gain to make it worth while. However if you buy $15,000 using 95 % leverage , using a deposit of $750. A 2 % move will give you $300 or 40 % return on equity. A couple of succesfull trades a week and your returning aprox $1,000 per week....
However if the trade goes against you 2 % your also down $300.
Young Gun
12th-January-2007, 11:03 AM
So far so good, up to about $2.87 at the moment, roughly 2.7% in the past 2 days.
caleb2003
12th-January-2007, 08:34 PM
It can definitely go against you with the leverage, I traded on the UK100 yesterday (I am in the UK for the time being) and whilst all signs were bullish I went long only to be whacked by an unexpected interest rate ris, the thing the thing went down faster than a _ _ (fill in the blanks yourself). Luckily I actually applied good money management rules (it's finally getting in my head)
so I could ride the wave and was up at the end of the day the same amount I was down at the rate rise, with being so leveraged a lack of money management could and obviously does kill gamblers accounts who did such a thing.
Cheers and good luck
Ps I have a UK CMC account and it only shows me the ASX200 index so no Aus stocks at all. I presume if I convert it to an Aus one i'll get all the stocks?
Young Gun
13th-January-2007, 03:58 PM
Tis true I know their are alot of things that can go against you when you trading which is why whenever I trade I put a stop loss and prepare myself for the maximum loss.
With this trade I set my stop at $2.75 if it hits that point I would have lost $400 however I have already anticpated this and if it happened although I would be dissaopinted it isnt the end of the world , wont stop me trading ect ..
Young Gun
13th-January-2007, 03:59 PM
Ps I have a UK CMC account and it only shows me the ASX200 index so no Aus stocks at all. I presume if I convert it to an Aus one i'll get all the stocks?
Not sure, if you dont pay for extra ASX live market feed fee you dont get any aussie CFD's however you still get CFD from europe, asia, america etc etc ....
caleb2003
13th-January-2007, 10:00 PM
with the marketmaker sooftware I have it doesnt allow me to set stop losses?!?
Young Gun
15th-January-2007, 10:22 AM
Update
The stock has hit a high of $2.97 and is hovering around that ammount , sitting on a profit of $300.00 or a about a 80% return on my investment.
Young Gun
18th-January-2007, 08:46 AM
Stop losses can be cruel .
I purchase 40 oz of gold at $25,000 US last night because I was admit Gold had performed well under the strong fluctuation of oil. I bought in at about $624 US two days ago , setting a stop loss for $620.
I wake up today the price of gold has risen over 1 % to $633 an oz . But guess what ???? It just triggers my stop button , bloody hell ....
kennas
18th-January-2007, 09:27 AM
That's a pretty tight stop YG. Any reason to set it that close? Is that a % drop from your buy in?
In golds circumstance it might have paid to place a stop just under $620 as this has been a support line for some time. So, I would have expected gold to bounce off that level, which it happened to do - it might not have, but that's where my stop would have been....Depending on the stock and circumstance, I set stops at a 10% loss, or just under previous support because I expect the stock to bounce off that level - depending on the strength of the support line. So, in this case, I might have gone for $618....Just my ideas, others will have different plans...that may work better.
Good work with LHG. Have you set a sell at a % gain, or at a resistance level? I see resistance at $3.00, $3.15 and $3.25.
Stop losses can be cruel .
I purchase 40 oz of gold at $25,000 US last night because I was admit Gold had performed well under the strong fluctuation of oil. I bought in at about $624 US two days ago , setting a stop loss for $620.
I wake up today the price of gold has risen over 1 % to $633 an oz . But guess what ???? It just triggers my stop button , bloody hell ....
proudwanderer
22nd-January-2007, 07:40 AM
Hey Young Gun,
What software are you using to produced all the charts you've posted up?
And where are you getting your instant up to the minute data feeds - and how much does it cost?
Thx
Young Gun
22nd-January-2007, 12:35 PM
The graphs are from market maker which is free with CMC Markets. In order to trade Aus CFD's with CMC markets you need direct market acess. This is I think off the top of my head $50 per month , or if you make 4 trades a month its free.
porkpie324
22nd-January-2007, 04:53 PM
It's 38 per month and free after that ammount of commission with CMC. porkpie
motion
9th-February-2007, 08:10 AM
Hi YoungGun,
Great post and info have followed you for a while. I'm just new to tradding and would like to get into CFDs.
Can you tell me are CMC Markets Australia any good ? and also any tips for who to use and what to read for starting out would be great.
