First off the title is misleading because I am not a disciplined trader. The point of this journal is to become that.
Trading Issues:
- I dont respect money; I think this stems from the fact that I think Im better at trading then I really am; my track record should tell me how good I am but that doesnt seem to register in my psyche.
- My money management is non existant
- I treat trading more as a casino rather then a business
- My trading plan is hodge podge; meaning Ill do one thing one trade and another a different trade. Now Ive got a lot of experience in chart reading but not having a solid trading plan and not having rules to this trading plan - appears to ruin even the best trades at times.
-------------------------------
Rules:
- I will allow a 5% loss to my account per day. 0-2k 50 2-3k 100 3-4k 150. (I may change these amounts in the future for ease of use).
- 10% loss per week max. If I hit 10% I will go to demo/sim trading and I will be allowed to trade the following week if I meet said demo/sim goal.
- 20% loss per month. If I hit 20% I am done for the month. My demo/sim trading will need to be done 3x if I hit this meaning once for the weekly loss and 2x for the month.
- I will be using a spreadbetting account so the contracts traded per k will be as follows:
wallstreet 1, FTSE 2, forex 2 per point, dax only traded once I hit the 2k threshold. forex may change depending on how volitile or not that market is but the above are the rules unless a 24 hour period is taken to evaluate.
- I will post my account balance everyday I trade.
- I wont use binary options as a trading vehicle
- I wont use regular options as a trading vehicle
Goals:
- 500 points a month, 250points a week, daily goal 100points
- Daily goal of 150 points; once this is hit 100 is secured and 50 is left (so starting over again). would take 3days to hit weekly goal if hit limit each day. (I may change daily goal to 200).
- What will occure with the weekly goal is this; once 300points is hit for the week. An automatic stop loss of 50points will come into play. Meaning 300points for the week 250 is banked 50 left to play with for the week and once that it is hit I am done.
- Monthly goal will be the same thing; So this will basically be 250 gained one week; then 300 gained following or lets say 550 gained one week then stop loss set to 50 once 550 hit. 500 banked and 50 left to trade. It may also look like this -50 +250 -50 +250; the monthly goal would not be hit.
- Some things of note - Once the 550 is hit for the month the 50 is used to build up equity in the slush fund (what I will call my increased leverage trading).
(debating if I should increase the monthly to 600 so I have a bit more to play with once I hit the monthly).
(I need to clarify and figure out how to proceed after the 500 mark if/when this would occur)
Slush Fund: (This is where I will give my trading freedom)
- Basically an account I can do whatever I want; binary options, options, increase the contract size etc ... but only as far as I have money in the sf.
- Slush fund and regular trading will be traded seperately to make it easier. So the rules of trading will apply to my regular trading and sf to that. (can trade using the same instrument with both).
- Once 1000 points are gained reached in the sf - 50% is auto transferred the the regular account. And will reoccur every 1k. (this may need to be evaluated). Goal is compounding yet save myself from blowing it all if doing well.
- Slush fund will also be used to treat myself; if I want to buy a trading book/program or course Ill do this. Or a new laptop Ill do this; computer game or whatever. Im not going to count this as part of my finances in my normal account (meaning Im not going to feel guilty for spending money). But I will deduct this from the sf.
----------------------------------------------------------
- At the start of every month both accounts are re-tallied.
- at the end of the month 50% of everything above 500 points is given to the sf.
- If I ever gain 1050 points in a given month an automatic stop loss to 1000 will be given and I will evaluate what I will do at this point with a 24 hour cooling off period.
- If I want to change any rule I need a 24 hour cool off period to judge said change (not in the heat of the moment).
My objective is to create discipline, retain my capital, yet also have the ability to compound my account when I do well, also I want my trading to improve and to create a more concrete trading plan.
It would be helpful if I used excel (I know nothing about excel) to help with the above.
If I go over my stop loss limit and not exit the day I will stop trading for 1 month and demo/sim trade only. If I trade too many contracts or too risky product (will come up with something).
Feel free to comment ...
Trading Issues:
- I dont respect money; I think this stems from the fact that I think Im better at trading then I really am; my track record should tell me how good I am but that doesnt seem to register in my psyche.
- My money management is non existant
- I treat trading more as a casino rather then a business
- My trading plan is hodge podge; meaning Ill do one thing one trade and another a different trade. Now Ive got a lot of experience in chart reading but not having a solid trading plan and not having rules to this trading plan - appears to ruin even the best trades at times.
-------------------------------
Rules:
- I will allow a 5% loss to my account per day. 0-2k 50 2-3k 100 3-4k 150. (I may change these amounts in the future for ease of use).
- 10% loss per week max. If I hit 10% I will go to demo/sim trading and I will be allowed to trade the following week if I meet said demo/sim goal.
- 20% loss per month. If I hit 20% I am done for the month. My demo/sim trading will need to be done 3x if I hit this meaning once for the weekly loss and 2x for the month.
- I will be using a spreadbetting account so the contracts traded per k will be as follows:
wallstreet 1, FTSE 2, forex 2 per point, dax only traded once I hit the 2k threshold. forex may change depending on how volitile or not that market is but the above are the rules unless a 24 hour period is taken to evaluate.
- I will post my account balance everyday I trade.
- I wont use binary options as a trading vehicle
- I wont use regular options as a trading vehicle
Goals:
- 500 points a month, 250points a week, daily goal 100points
- Daily goal of 150 points; once this is hit 100 is secured and 50 is left (so starting over again). would take 3days to hit weekly goal if hit limit each day. (I may change daily goal to 200).
- What will occure with the weekly goal is this; once 300points is hit for the week. An automatic stop loss of 50points will come into play. Meaning 300points for the week 250 is banked 50 left to play with for the week and once that it is hit I am done.
- Monthly goal will be the same thing; So this will basically be 250 gained one week; then 300 gained following or lets say 550 gained one week then stop loss set to 50 once 550 hit. 500 banked and 50 left to trade. It may also look like this -50 +250 -50 +250; the monthly goal would not be hit.
- Some things of note - Once the 550 is hit for the month the 50 is used to build up equity in the slush fund (what I will call my increased leverage trading).
(debating if I should increase the monthly to 600 so I have a bit more to play with once I hit the monthly).
(I need to clarify and figure out how to proceed after the 500 mark if/when this would occur)
Slush Fund: (This is where I will give my trading freedom)
- Basically an account I can do whatever I want; binary options, options, increase the contract size etc ... but only as far as I have money in the sf.
- Slush fund and regular trading will be traded seperately to make it easier. So the rules of trading will apply to my regular trading and sf to that. (can trade using the same instrument with both).
- Once 1000 points are gained reached in the sf - 50% is auto transferred the the regular account. And will reoccur every 1k. (this may need to be evaluated). Goal is compounding yet save myself from blowing it all if doing well.
- Slush fund will also be used to treat myself; if I want to buy a trading book/program or course Ill do this. Or a new laptop Ill do this; computer game or whatever. Im not going to count this as part of my finances in my normal account (meaning Im not going to feel guilty for spending money). But I will deduct this from the sf.
----------------------------------------------------------
- At the start of every month both accounts are re-tallied.
- at the end of the month 50% of everything above 500 points is given to the sf.
- If I ever gain 1050 points in a given month an automatic stop loss to 1000 will be given and I will evaluate what I will do at this point with a 24 hour cooling off period.
- If I want to change any rule I need a 24 hour cool off period to judge said change (not in the heat of the moment).
My objective is to create discipline, retain my capital, yet also have the ability to compound my account when I do well, also I want my trading to improve and to create a more concrete trading plan.
It would be helpful if I used excel (I know nothing about excel) to help with the above.
If I go over my stop loss limit and not exit the day I will stop trading for 1 month and demo/sim trade only. If I trade too many contracts or too risky product (will come up with something).
Feel free to comment ...