Internet ego? Time for transparency!

[MRC & Co]

Well, it is about time I did this. I talk to quiet a few traders around the country and currently do this job for a living. I see a lot of internet egos and probably, false information being touted, so thought I would put it all out there and hopefully some others follow on.

I plan to go back to work, so I can add to my capital base and let trading profits compound without touching the account.

I am looking at setting this up as a potential business, so I can write off expenses before declaring profit and pay less tax if I move into a higher income tax bracker. But I will be consulting a professional before I decide upon anything.

I have been looking into a few jobs, had a few offers, but want to do something either in relation to trading, or where I can make a difference and in a field I enjoy. I want to live, not simply exist. The ACCC looks like the current leading candidate at the moment.

I hope one day to expand this business and if I reach the heights I want, to try to teach others with passion how to trade the markets.

I know, a lot of big goals and this is just the beginning for me, but I hope to achieve them and will plug away, one day at a time, and strive for them. From day one trading (a couple years ago), I made a profit trading, so got very very lucky I believe. But since, have really tried to make it consistent and as such, have signed upto the chartist to learn the art of the exit.

I came to the same conclusions of using volume spread analysis and traditional chart patterns, before discovering this was what Radge uses (I always thought he used EW). But his power set-ups suited me perfectly, and as I was struggling with exits, I thought it was perfect to learn from one of the best and most experienced in the Aussie trading environment. I also make a few of my own trades and add a few variations to Radge methods sometimes, from movement of stops, to pyramiding.

I play for a couple of indoor soccer teams currently, one outdoor team, love to watch boxing, documentaries and soccer. I enjoy a few beers with some great mates on weekends and have been with my partner over 3 years, lived with her for over a year and am very happy. I was born into a blessed life.

I see plenty of internet egos around the forum, so decided I will put all my trades and myself on the line.

Below is my June trading log, the final figure before each new acronym is the net difference in the trade. The bold figure at the bottom is the monthly net difference, after commissions and foreign exchange. Data is $40 a month, which has not been factored in.

Some of you may recognise me, I have added my photo as my avatar though don't have many online and this was the only one of me alone (the others I am in a group).

Cheers fellas and all the best with the trading.

Note: There are a few trades missing, some I made through E-trade and others on futures trades, but there is no material net difference.

I also have some cash with a hedge fund to diversify and hold JST, CCP and EQN for the longer-term, but am looking at dumping JST and adding a stock in agribusiness (potentially NUF). My trading account makes up a little over 50% of my modest portfolio.

Superannuation account is small and I do not touch it.

Quantity Price Mark-to-Market Profit and Loss
Symbol Prev Close Close Prev Close Close Transaction Prior Open Corp Action Commissions Dividends Total
Stocks
ACOR 0 80 -- 32.3300 64.14 -62.85 0.00 -1.04 0.00 0.25
AGK 0 0 -- -- -59.80 -73.60 0.00 -12.00 0.00 -145.40
APH 0 0 -- -- -51.26 -61.36 0.00 -2.10 1.40 -113.32
AXA 0 0 -- -- -42.75 -171.00 0.00 -12.00 0.00 -225.75
BDK 0 0 -- -- 1.57 -92.68 0.00 -4.19 0.00 -95.30
BTU 0 0 -- -- 121.81 -181.36 0.00 -2.09 0.00 -61.64
BUCY 0 0 -- -- -145.41 110.77 0.00 -4.21 0.00 -38.85
CAL 0 0 -- -- -32.83 93.97 0.00 -2.63 0.00 58.51
CCOI 0 0 -- -- 462.86 -379.68 0.00 -3.01 0.00 80.17
CE 0 0 -- -- 107.38 -299.34 0.00 -3.12 0.00 -195.09
CLHB 0 0 -- -- -39.71 -194.24 0.00 -4.19 0.00 -238.14
CMCSA 0 0 -- -- 152.71 -202.55 0.00 -2.60 0.00 -52.44
CUB 0 0 -- -- 9.44 129.69 0.00 -2.10 0.00 137.03
ENER 0 0 -- -- 20.07 5.99 0.00 -2.10 0.00 23.96
FTO 0 -150 -- 22.2200 6.31 506.75 0.00 -1.05 0.00 512.00
GCL 0 0 -- -- -1.30 -468.00 0.00 -12.00 0.00 -481.30
GLF 0 0 -- -- -24.94 -3.17 0.00 -2.12 0.00 -30.22
GSX 0 0 -- -- -120.77 -105.74 0.00 -5.24 0.00 -231.76
GW 0 0 -- -- -111.59 381.51 0.00 -12.19 0.00 257.72
HOC 0 -75 -- 33.5000 -346.64 512.19 0.00 -3.14 0.00 162.41
HTCH 0 0 -- -- -136.55 34.73 0.00 -4.22 0.00 -106.04
IPL 0 0 -- -- -56.25 -52.25 0.00 -12.00 0.00 -120.50
KEG 0 0 -- -- -202.21 29.42 0.00 -4.20 0.00 -176.99
LLC 0 0 -- -- -87.00 450.00 0.00 -12.00 0.00 351.00
LM 0 0 -- -- 45.25 -171.38 0.00 -2.12 0.00 -128.25
QAN 0 0 -- -- 60.00 80.00 0.00 -12.00 0.00 128.00
RTI 0 0 -- -- -338.31 702.44 0.00 -8.43 0.00 355.69
RYL 0 0 -- -- -63.78 -182.84 0.00 -2.37 0.00 -249.00
SBUX 0 -250 -- 15.5600 -26.04 0.00 0.00 -1.30 0.00 -27.34
SIMG 0 0 -- -- -12.17 -242.65 0.00 -4.19 0.00 -259.01
SMG 0 -229 -- 17.1100 -61.09 2,439.06 0.00 -1.19 0.00 2,376.77
SOHU 0 0 -- -- 348.30 -299.52 0.00 -2.09 0.00 46.68
SPN 0 0 -- -- 39.62 -212.69 0.00 -6.35 0.00 -179.42
SQNM 0 238 -- 17.5800 128.60 52.05 0.00 -1.24 0.00 179.41
TCBK 0 -220 -- 10.2100 85.37 818.87 0.00 -3.25 0.00 900.99
TGI 0 -60 -- 42.8200 -35.19 486.29 0.00 -1.05 0.00 450.05
P/L on FX Translation (Stocks) 89.43
Total (Stocks) -342.20 3,376.81 0.00 -171.12 1.40 2,954.32

 

[Sean K]

Cheers MRC, look forward to the updates.

 

[MRC & Co]

Thanks mate, though I would fill in a few more blanks just to put it all out there.

This is my 7th month of trading full-time, and as such, need to make a profit to survive.

However, my aim has become to never have a negative month. Consistency to me is of paramount importance, I think in the long-term, it says a lot about a trader.

I made my first investment nearly 14 years ago, when I was 12, in Gold Mining Australia and blew up! It was my entire capital! ha ha, taught me a few key lessons right there! Namely, never put all your egs in one basket, especially on a spec! Since then, I have mainly avoided such specs! Took me many more years though to learn the basic rules of trading, including something as simple as a stop loss, lol.

I have two degrees, a Bachelor of Applied Economics and a Bachelor of Management, achieving a Distinction average. I am also studying my Diploma of Financial Services (though HATE it). Enjoyed economics and think it somewhat helps understand the global macro environment today, though not sure how much it has contributed to my so far, short-lived trading success.

Anyways, will post again next month where my trading will be minimal! Have a few shorts open and cannot find any longs to hedge, one rule of my tading is to at least hedge shorts and longs to some extent, and a 3:1 ratio.

Am also planning, one day down the track, to dedicate a portion to intraday trading, with my preferred option so far using Pivots, traditional patterns, VSA and some market internals, such as the TRIN, tiki, ticks and PC ratio for guidance. I did this for a while, but realised I would have to work to ever build my portfolio to a point where I can retire young, and as such, concentrate my efforts now on refining small elements of my EOD swing and position trading.

Rant rant rant!

Cheerio

 

[professor_frink]

haha!

you're almost as ugly as I am MRC

 

[MRC & Co]

ha ha, thanks Professor!

Now I just need to work on the humour!

 

[MRC & Co]

Well, it is my second month since posting my results, and let's just say, this has been my worst drawdown since beginning two years ago!

The month started out well (luckily or the month would have been negative thousands), before it turned to absolute horror, being caught short-covering, the market bouncing cost me big-time. My oil longs were also wiped out.

It all started when..........I was caught on the wrong side of the big oil move to start of proceedings and an IB error caused me to not be able to cover, I was absolutely fuming and then the next day the market bounced and this threw me into a tialspin. So I stood on the sidelines until I calmed down. My head was literally spinning, but it's all part of the game and I had to ensure I didn't revenge trade.

Once I re-entered, my equities trading did no better, luckily I managed to put some bread and butter on the table through some futures scalps every now and then. Should have done a lot better but my emotions got the better of me on one occassion and cost several hundred. Tried a random entry on an oil slide simply to see it bounce striaght up! ha ha. Should have paper traded that one

Here is my log: The first bold underline is my equities result, the second bold underline is my futures result and the last bold italics is my overall result, taking into account all costs, forex exchanges, data, interest etc.

ACOR 80 0 32.8300 -- -120.78 -18.44 0.00 -1.05 0.00 -140.26
AEO 0 0 -- -- -43.87 -74.84 0.00 -5.15 0.00 -123.86
AXA 0 0 -- -- -42.75 -171.00 0.00 -12.00 0.00 -225.75
FE 0 0 -- -- -30.39 -147.56 0.00 -4.10 0.00 -182.05
FIC 0 0 -- -- -48.47 -300.21 0.00 -2.67 0.00 -351.36
FLO 0 0 -- -- -63.78 7.98 0.00 -3.75 0.00 -59.55
FTO -150 0 23.9100 -- 211.74 299.75 0.00 -3.13 0.00 508.36
GT 0 0 -- -- 100.96 -182.76 0.00 -2.07 0.00 -83.87
GW 0 0 -- -- -94.61 4.92 0.00 -9.85 0.00 -99.54
GXP 0 0 -- -- 25.50 -35.85 0.00 -1.03 0.00 -11.38
HOC -75 0 36.9200 -- 33.78 621.54 0.00 -3.12 0.00 652.20
ILA 0 0 -- -- -5.20 41.10 1.39 -2.60 0.00 34.69
KO 0 0 -- -- 68.60 -218.07 0.00 -2.38 0.00 -151.85
LLC -300 0 9.5500 -- -27.00 -135.00 0.00 -6.00 0.00 -168.00
LPL 0 -231 -- 14.8600 -94.59 12.21 0.00 -1.21 0.00 -83.60
PHH 0 0 -- -- 259.61 -257.60 0.00 -2.47 0.00 -0.47
PLCE 0 0 -- -- -159.52 -196.76 0.00 -2.08 0.00 -358.36
QAN -1,000 0 3.0400 -- 30.00 -200.00 0.00 -6.00 0.00 -176.00
RBN 0 0 -- -- 111.91 -264.85 0.00 -2.07 0.00 -155.02
ROST 0 0 -- -- 46.40 -64.93 0.00 -2.06 0.00 -20.59
RTI -75 0 35.6200 -- -327.32 310.16 0.00 -1.04 0.00 -18.19
SBUX 0 0 -- -- -5.50 318.43 0.00 -2.59 0.00 310.35
SIMG 400 0 7.2500 -- 25.48 -121.73 0.00 -2.10 0.00 -98.35
SMG -229 0 17.5700 -- -251.63 114.04 0.00 -1.20 0.00 -138.79
SQNM 0 0 -- -- 7.45 461.86 0.00 -4.99 0.00 464.32
TAH 0 -600 -- 8.6800 -12.00 36.00 0.00 -6.00 0.00 18.00
TCBK -220 0 10.9500 -- 79.80 -419.74 0.00 -6.51 0.00 -346.46
TGI -60 0 47.1000 -- 73.39 23.77 0.00 -2.06 0.00 95.10
VRTX 0 100 -- 34.5000 -9.56 0.00 0.00 -1.06 0.00 -10.62
VRX 0 0 -- -- -86.37 -48.77 0.00 -3.94 0.00 -139.08
WGOV 0 91 -- 45.0000 -24.73 -33.47 0.00 -1.05 0.00 -59.25
ZRAN 0 -333 -- 8.2700 -21.23 464.61 0.00 -1.74 0.00 441.64
P/L on FX Translation (Stocks) 592.56
Total (Stocks) -394.68 -175.18 1.39 -109.08 0.00 -84.99
Futures
NQU8 0 0 -- -- 151.19 0.00 0.00 -5.00 0.00 146.19
QMU8 0 0 -- -- 867.97 0.00 0.00 -14.90 0.00 853.06
YM SEP 08 0 0 -- -- 1,082.28 0.00 0.00 -88.06 0.00 994.22
Total (Futures) 2,101.44 0.00 0.00 -107.97 0.00 1,993.47
Total (All Asset Classes) 1,706.75 -175.18 1.39 -217.05 0.00 1,908.47
Broker Interest Paid and Received 49.64
Other Fees -37.50
Payment in Lieu of Dividends -9.28
Total P/L for Statement Period 1,911.33

On the job front, I applied for my absolute dream job at Propex derivatives, and went for testing in Sydney a couple days ago. Made it through now to the interview stages. So see how we go, I will be shattered should it not come off, but trying to just go with the flow and show what I know and what I can do.

Proud in the fact of a terrible market climate for my trading system, I managed to still maintain my goal and have a profitable month.

I am sitting more on the sidelines at the moment, until the market cycle turns back into my equities strategies favour. Until then, I will continue to work on my intraday scalping of the mini indices and crude (which even the QM, is a bit too large for a little fish such as myself). Need too tighter stops.

Cheers whoever actually reads this. ha ha, but keeps me honest, can't fool myself with my results when I have to post this to the 'world'!

 

[Sean K]

Nice work making money last month. I was down about $80K on my longs. eeek.

Is there any way you can display the trades a little clearer? I can't make heads or tails out of all those numbers...

SK

 

[RobinHood]

I'm with SK!

maybe you can screenshot the spreadsheet you're copying this from, then stick it up as an image?

 

[MRC & Co]

Was a TOUGH month ey Kennas! I have only been trading about 1/3 of my trading account over the last couple months, this market environment is just insane!

Yeh, no prob fellas, I will look at taking a screenshot and posting it. Also can show a month by month equity curve in IB, so will try copy them over.

My software skills are LIMITED to say the least, so will do my best.

Gotta fly for now.

Cheers

 

[Callaghan]

Hey MRC,

Been interesting reading your blog, well keep tuned in.

Only a first year University student myself [commerce and economics], so I'm learning loads of practical scenarios from reading a few of the posters here.

Mind if I ask, where/how did you study/learn about the money and derivatives markets?

Cheers,

Callaghan.

 

[MRC & Co]

Hey Callaghan,

Good to see someone come out of the woodwork and get something out of my posts at least. I'm not looking forward to August results already

On a quick side note: Sold JST shares at 3.60 (don't like retail plays at the moment), and will dedicate the reciepts to my trading account as opposed to getting on board NUF. My account is ever growing and I don't feel right now is the time to make any longer-term moves.

Back to the Qs. The forums are great to learn some practical scenarios. If you want to learn individual trading methods, I would recommend 'Trading the SPI' by Brent Penfold and 'Mastering the Trade' by John Carter. I feel these gives you all the basics you need to be well on your way and know what it takes to develop an overall trading plan. Then comes the hard part, finding your own niche!

I have always been around traders. My cousin (more like a brother and 10 years older), and his mates were always trading. So it first gave me the buzz to study it. Though, a couple of years back I'm not sure what happened, I just clicked one day and thought enough was enough, time to really learn it for myself and try to master it and have not looked back since. Studied 16 hours a day 7 days a week when I first left work and for the year or so preceeding that, would finish work, get home by 6pm and study to 12-1am on everything I could about the markets. Sleeps were poor but I was like a crazed man with new information to learn and the buzz to keep me going!

Cheers, anymore questions, fire away.

Matt

 

[Callaghan]

Excellent! Thanks for the info mate. Really appreciate the time taken to respond =]

I'm still 18 myself, so I'm going to take in as much as I can from as many sources as I can over my University degree and hopefully build up a solid skill base and understanding.

But I find, and i have seen others post, is that the reason many people don't get into the world of trading and stock investing, is the information overload. Never no where to start!

I personally will start with the concepts of investing, before trading, as i believe it to be less intense and probably easier to learn. This ASX still looks like a foreign country to myself, and unfortunately I have no contacts family or friends that are big in business or have much share knowledge outside a stockbroker, so I'm learning what I can early as possible.

My immediate goals:
1. Get to know the ASX website
2. Nail my degree
3. Browse ASF and read all debate and discussion.
4. Have a serious attempt at ASX trading game, which starts today.

Longer term:
1. Paper trade for a few months seriously
2. Once I have some capital saved and confidence, start to invest
3. Start learning about charting and trading

Longest term
1. Retire young and well off

In all seriousness, would you suggest I am going about this completely the wrong way?

Cheers,

Callaghan

 

[Sean K]

Wow, Callaghan!!

Don't forget to live life!!!

Remember, you can never relive your old age.....our bodies wear out!

And that means, do not miss your 20's and 30's!!!

All the best!

Sean K

 

[MRC & Co]

lol, yeh, definately important to live life! But you can do all that and still find time to live! I worked, studied, played sport and still had time on the weekends to get a bit too roudy with the boys! And maintained a relationship through all of it!

Yeh, your goals sound good. I also started as a fundamental investor. But soon realised I couldn't handle large drawdowns based purely on the premise my analysis was correct, and hence moved towards trading.

Longer-term, I would suggest studying a few methods, which you should pick up by just surfing ASF and google or use a charting site anytime you cannot understand (charting is simple, don't be afraid by it's mystical nature). Then pick the timeframe, and method of analysis which suits your personality and lifestyle. Also I personally think it is important to realise that a certain method may not work in certain market cycles and in these you have to have some way to cut down your exposure to the markets. This can be done through money management which is a big factor in your overall performance. (do a search for anti-martingale techniques). Most are included in "Trading the SPI". "Adaptive Analysis" by Nick Radge will also give you a very big headstart on the basic skewing of numbers in your favour and an insight into micro-patterns which can be very helpful IMO.

All the best mate.

Oh and couldn't work out how to cut and paste those stats accross fellas, I will give it a longer crack next month so you can see an exact breakdown of my suffering!

 

[Sean K]

Well, I'm only doing % ages so you don't know how much I have in the bank, but just to put some things in perspective, I'm down $300K since April. On paper. eeeek.

 

[Callaghan]

Sean, damn, thanks for making me feel like a loser! it's all well and good, I'm just working my t1ts off to try and get myself ahead, I see my buddies with all their paths laid out thanks to the old "who you know matters" scenario, makes me want to not give up.

That's the way MRC, it's always hard to fit everything together but balance makes it easy =) I have two jobs [bar job for the money and working in a financial planners office not paid enough to quit the bar job, but need it for the resume] do martial arts, hit the piss with the boys weekend nights [if im not serving the piss] and have had a missus since school, unfortunately it is getting hard to handle it, losing one of the jobs would be ideal but no good well paid company would take me on without the office experience I'm getting at the moment.

"I couldn't handle large drawdowns based purely on the premise my analysis was correct, and hence moved towards trading." - One day I'll understand what you just said. To be honest, I cannot interpret but I'm guessing you were not satisfied with investing alone? or you just didn't like it?

I also talked to Nick and he gave me some pointers that were very helpful. Thanks for the tips, I kid you not I appreciate all your advice [even Sean telling me to get a life] very much, I can't say thank you in a way over text for the help. I would shout you all a few rounds at the pub if it means anything to you.

Cheers, much appreciated.

Callaghan.

 

[MRC & Co]

ha ha, yes, when I said 'have a few beers with the boys' I certainly meant a FEW too many! I have been in my fair share of trouble, not good, but memories!

Oh, and it's far from over! I didn't get the name, 'wild man' for no reason, as bad as it is, but I am harmless and enjoy myself!

Damn Sean, you must have a HUGE capital base, if i lost 1/3 of that, I would be wiped out! I am a very very little fish! For now!

You sound like your doing well Callaghan and have your head screwed on, balance is the ultimate thing to achieve IMO! Life is too precious too focus on just ONE thing.

Nick is fantastic, very very easy to get in contact with and really cares so will always give a hand. Down to earth also. Very good place to start...........and end!

"I couldn't handle large drawdowns based purely on the prmeise my analysis was correct and henc moved to trading". This simply means, with T/A (technical analysis), price prooves you right or wrong. You keep relatively tight stops. With F/A (fundamental analysis), you invest (really just a longer-term trade), assuming your analysis is correct. You can place a wide stop, or like me, only pull out of the position once some news comes out showing your analysis is wrong. For example, I was in JST, but saw retail figures were POOR and only falling, so pulled out. Ultimately, with F/A, it means you will have to take a larger loss if you are wrong, something which I cannot take (I can with a couple of positions, but not with my entire trading account). In a time of global uncertainty, I cannot see anything being overly secure other than scalping or intraday trading. That being said, I have more bullish positions on at the moment (these positions are EOD, otherwise known as End Of Day) and usually last a week or so on average.

Cheers

 

[Sean K]

I've been investing for 15 years MRC. UN service windfalls and military super payouts, all invested on margin just before and during the bullmarket were lucky timing.

 

[Callaghan]

MRC I bow down to you. Very well explained mate, very. Thanks a lot for the insight =]

 

[MRC & Co]

Lucky hey, after that long in the market, I'm sure you knew what you were doing! Excellent work Sean, your living the dream!

Callaghan, lol, I am still fresh meat in this trading world. Still developing the shorter-term intraday side of my trading, which is very very amateur at the moment. EOD trading is downpat these days.

No problems, all the bets!