Hi all, this is my first post.
I am completely new to trading. Haven't owned shares either in the past. I've just started out trading AUS/USD CFDs and I wanted to share some of my experiences and thoughts.
Firstly I traded a demo account for about 3 weeks. This probably wasn't enough time. I managed to make $23K in a week though! So naturally I thought I would give it a shot for real.
I really wasn't ready for the stress of using my own money. Even in small lots. It does get better though.
I deposited $10k and am trading 10000 and 100000 lots. I have been reading everything I can about manageing my money and risk. I think I have it under control, somewhat.
Even with small amounts of money (relatively) the stress is quite high. But I like using small amounts of real money as apposed to the demo account, as it forces me to be very clear about my trades. Mistakes will cost ME money.
Some of the mistakes I have made are.
1. not making my stoploss amount the same size as my position. This was an accident, but cost me some money!
2. trading for the sake of it. NO NO. Most times I lose.
3. Not trusting my indicators. Many times I could have made really good profits had I traded.
So far I am infront, but I seem to be about 50/50 win/loss. Although that figure is somewhat distorted due to silly gambles that I just shouldn't have done. Even with small amounts.
A few thoughts........
I think I have an idea what its like to be a manic depressive. One minute you are on a high, the next low. Although I am getting better, I think.
Indicators are good, most of the time.
I keep it simple and just use a borringer band, MACD and CCI.
I wait for the MACD lines to cross, and watch for the BB to bottleneck. Then trade accordingly. The CCI also gives me an idea of where things are headed.
This works most of the time, and I like to go back in history and click through the candles one at a time and make decisions, and see how I went.
Sometimes the chart goes against the indicators and that confuses me. I like to watch for the start of strong looking trends, but sometimes these occur with little sign from the indicator!
I trade 15min candles, but I also watch the 1hour and 4 hour charts to get a feel for where things are headed.
OK, thats about it for now. I'm no expert by any means, and not even sure I can make it as a trader. But I am going to try, and try and have fun as well. Can't take life too serious.
I am always open to any suggestions too!