Trading Spreads for Consistent Profit in Small Accounts: The Entrepreneur

Week of 6/23 and 6/30

Took a week off from writing as well as from aggressive nature trading. When I surveyed the landscape of trades I had open, I decided that it was too much. This is something very important to learn. I felt like it was too much for two reasons. One, because I had almost all of my capital at risk, which is dangerous. Two, because I just had too many separate items to keep track of. When trading, one must always stay within in the confines of relative comfort. Understanding that this business is inherently risky, but managing that risk in a way that you still have control is the key to success. When things begin to slip out of my control, I tend to get reckless and/or senseless, with decisions. So over the last two weeks I have closed many more positions than I opened, back down between my target number of 5-10 open trades and a little over half capital exposure (this is higher than recommended exposure because of the size of the account). There was much more volatility these last two weeks in the market, which is great for creating profit potential. The other side of the coin there, is we are heading into a holiday. Monday is a half day for markets, and they are closed on Tuesday.  That tends to mean thin markets, where either nothing happens, or we get large swings and wide spreads. I think I will wait for next week (after 4th of July) to ramp up the activity.

The subtitle for this post is “The Entrepreneur” because I want to encourage anyone who is interested in trading to go for it. The sales pitch says, “Want to be your own boss? Want to make money? Want to feel successful?” I cannot promise any of those things. I think they are possible to accomplish with trading, but as is the case with so many other types of businesses, you really have to work hard and smart. I believe that this is a simple avenue to something like having your own business. You make the choices about the business. You reap the rewards of your success and also your failures. I do caution that there is a statistic out there that says that only 10% of traders are successful. That is meant to scare you. Because this is money in a slightly more risky endeavor than the norm. But there is risk involved in any business.  The access to markets has evolved in a way that anyone and everyone can participate. What other business can you get started with two thousand dollars? It is up to you how well you educate yourself on how to do so.

Enjoy the journals. As always comments and questions are welcomed. If my processes needs explanation, please let me know.

6-30

Trade Journal – Open Trades

Trade Journal – Summary

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