I've been a member of this forum for the best part of a year. I've learned a great deal by reading through a number of the beginner threads as well as a number of others. Iíve decided to have a proper go at trading as itís something Iím really interested in and I feel it would suit me well. Iíve read several books including Murphyís ĎTechnical Analysis of the Financial Marketsí and Lefevreís book about bucket shops and his trading journey. Both were very interesting.
Whilst Iíve learnt a huge amount over the past 12 months (about investing/trading/life etc) itís still obvious I have a great deal to learn before putting any money on the table and as such Iím going to paper trade for a period of time to let me develop my skills and see if this is something Iím any good at. I have an interactive brokers account with a small amount of funds in their and as such I set up a paper trading account.
I think the paper trading account starts you with 1mil US but Iím just going to assume I only started with 25k (AUD), that way I can measure the influence of brokerage and the whole trading system is more realistic. I might even message interactive brokers and ask if they can reduce my balance to 25k (paper money) now I think about it.
I work full time during the week (generally 50 hours or so) so day trading is not for me, my plan is to take medium term positions, perhaps anything from 1 week to 3 months or more depending on the goal of the trade and the market movements. Ultimately Iím just looking to find what works best for me. Iím just looking to make simple trades (no derivatives etc.) and Iím interested in trying a whole bunch of different techniques but ultimately starting simple and going from there. Iím very interested in pairs trading however so that will definitely be something I explore at some stage.
Iím not sure how often I will update this blog. Iím quite busy in life at the moment, but I am looking to take this pretty seriously as I truly believe I want to be successful at this.
Iíd love for some of the more senior members to chime in every now and then and give me their thoughts but the ultimate reason for keeping this blog is so that I keep focused on how Iím going. Any advice I pick up along the way is definitely an added bonus.
With regards to specific trading plans Iím going to start pretty simple, mainly focus on price, volume, and a couple of simple indicators such as a moving average and RSI and then look to explore from there. Iíll mainly look to trade the ASX200 to begin with.
As I said Iíll use interactive brokers as my trading platform and I think Iíll use Yahoo finance for my charting software as it seems pretty decent for free software, that said if anyone has any suggestions on a better chart program let me know. I have live data at work if needed however given that Iím not looking to day trade I donít think live data is essential anyway. My plan is to study charts/trading options after work hours anyway.
I think that covers everything, Iím going to do some serious research over the next week or so and hopefully find some trading opportunities I like.