Turning a small account into a big account

[Iron Man]

In my blog I will post the trials and errors of getting a small account into a big account.

Start: $1800
Current: $3000

Rules: Risk only $100 per trade max
Entry: Setups
Exit: trailing Stops & Price Targets.

I seek help and comments in getting the account to double on such a small equity.

 

[Iron Man]

Todays Trades

AOE @ 3.29
Best winner - ALS @ 3.01

Question to all - what is the best way to keep profits in the trade. This has been my biggest problem as I get winners and have the urge to grab the profits off the table.Only to see it keep going?. comments please

 

[James Austin]

it's simple, in theory at least.

you need an exit target and only exit if the trade is compromised technically or fundamentally, ie. dont exit for emotional reasons.

so
A] you must have an actual price target, have it firmly in mind.
B] use trailing stops if possible to lock in some profit
C] you must have confidence in your target; this only comes once you have tested and re-tested your strategy; knowing for example, that your target is reached say 70% of the time

if you have A], B] and C],
you will be more inclined to wait for your target and less inclined to exit early.

 

[Iron Man]

Thanks James - good advice.

However some setups like breakouts don't have clear targets.
Do you use price targets only ?

I will post the ALS trade as it progresses.

AOE off to a good start.

 

[James Austin]

the trades i take always have price targets

whatever trade types you take,
find a tried-and-tested profit exit strategy,
in the heat of battle, you dont want to choose your exit randomly or emotionally.

i dont trade break-outs so cant advise there.

 

[nomore4s]

About bloody time:

Exits are the hardest part of trading imo, especially profitable trades - getting stopped out is easy but deciding when to close profitable trades is hard.

You need to just play around with different exits until you find 1 you can live with.

 

[Iron Man]

Thanks guys, I am honored to be in the aura of two great traders.

Exits also imo are the hardest thing as you never know the final outcome. Losing profits seems to hurt more than losses.

I will use the sell half at target and half trail stop with ASL.
Its hard to keep to the plan when you see the profit sitting there saying take me take me!.Then the stock retraces and its ahhahahaha.

In any case no more emotions.

Question - how do i get charts posted ? it asks for http:?

Iron Man

 

[nomore4s]

Search the forum for details, there are a couple of threads explaining how it is done.

 

[James Austin]

re "great traders" i assume you refer to nomore4s, . . . but who's the other one??

also,
you post charts in "comments" using this site http://tinypic.com/login.php

 

[nomore4s]

lol, I'm by no means a great trader, very much learning this great art, hope to oneday be a very successful trader though.

 

[James Austin]

me to,
so who's he talking about??

 

[Iron Man]

Ok this should work, thanks James on how to do it.

 

[Iron Man]

The two lines are two ATR length trailing stops.

 

[Iron Man]

Here is the latest chart of ALS. As you can see its up and today a little down intraday. Looking at the chart I may taken half profits at 4.12 area. Instead I think the cycle for this stock is greater and going for 4.86. I have always been torn between trailing and taking profits. I have noticed that when the profit is up there's a point where I think wow thats nice money. At that point I should take it as the next day it will go down like today. comments ?

 

[Iron Man]

Open RIV @ 4.51
ABY @ .38
WPL @38.68
AWE @3.29
AGO @1.25
CGF @ 1.74
DJS @ 2.94

 

[Iron Man]

Been in Jedi mind mode thinking how to increase my equity base quickly. Looking at previous trades if I had bagged profit instead of waiting for a trend or trailing stop I would be @ the $4000 mark.

The solution is to trade 20% of my equity size in short reachable or measurable profit targets > than 2.1 R/R.

eg make $200 or more per trade. Thus 3 trades which I will call Kamikaze trades could make a rolling profit of $600. The other trades 1/2 at a suitable longer profit target and the rest trail stop 2ATR.

You have no idea of the internal rift I feel with profit on tab and trying not to bag it.

This is the plan for May.

If it works then the equity will rise allowing more rolling profits and more normal trading.

May the profits be with you

 

[Iron Man]

market is in bull mode. Some profit taking on the start rush in.

RIV hit price target @ 3.68 at open. I love it when the machine does all the work. New positions started however I got caught in the gaps up prices. Lesson: If big moves like today are obvious then wait for sell off before getting in. This sounds wise but much more work than placing limit orders.

 

[Iron Man]

Sorry - correction

AOE was sold not RIV
Bought $3.29 sold $3.68

 

[Iron Man]

I am fully invested in the account with today s buys all slightly in the red. The nice folks at cityindex deleted a trade that got triggered at the wrong price which would have been ugly.

New trades: IRN, EXT, WTF (I love this name),PEM,CFU,
Old: ALS is still hanging in there, its interesting that it hasn't moved in the last few days as it consolidates.

 

[Iron Man]

So many shares to long, all of capital in trades.
But I am still putting in orders as the more equity in profit the more trades go on. Yesterdays performer was WTF. Latest additions apart from WTF are in the red.