Small Traders Diary

and more...

1. Forget the news, remember the chart.
You're not smart enough to know how news will affect price. The chart already knows the news is coming.
2. Buy the first pullback from a new high. Sell the first pullback from a new low.
There's always a crowd that missed the first boat.
3. Buy at support, sell at resistance.
Everyone sees the same thing and they're all just waiting to jump in the pool.
4. Short rallies not selloffs.
When markets drop, shorts finally turn a profit and get ready to cover.
5. Don't buy up into a major moving average or sell down into one.
See #3.
6. Don't chase momentum if you can't find the exit.
Assume the market will reverse the minute you get in. If it's a long way to the door, you're in big trouble.
7. Exhaustion gaps get filled.
Breakaway and continuation gaps don't. The old traders' wisdom is a lie. Trade in the direction of gap support whenever you can.
8. Trends test the point of last support/resistance.
Enter here even if it hurts.
9. Trade with the TICK not against it.
Don't be a hero. Go with the money flow.
10. If you have to look, it isn't there.
Forget your college degree and trust your instincts.
11. Sell the second high, buy the second low.
After sharp pullbacks, the first test of any high or low always runs into resistance. Look for the break on the third or fourth try.
12. The trend is your friend in the last hour.
As volume cranks up at 3:00pm don't expect anyone to change the channel.
13. Avoid the open.
They see YOU coming sucker.
14. 1-2-3-Drop-Up.
Look for downtrends to reverse after a top, two lower highs and a double bottom.
15. Bulls live above the 200 day, bears live below.
Sellers eat up rallies below this key moving average line and buyers to come to the rescue above it.
16. Price has memory.
What did price do the last time it hit a certain level? Chances are it will do it again.
17. Big volume kills moves.
Climax blow-offs take both buyers and sellers out of the market and lead to sideways action.
18. Trends never turn on a dime.
Reversals build slowly. The first sharp dip always finds buyers and the first sharp rise always finds sellers.
19. Bottoms take longer to form than tops.
Fear acts more quickly than greed and causes stocks to drop from their own weight.
20. Beat the crowd in and out the door.
You have to take their money before they take yours, period.

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SMALL TRADERS DREAM DIARY

Small Traders Dream Diary

Hi, Dirk here and I will start Small Traders Dream Diary today…..

What does this mean? Well, starting trading actually in 1999 an stock for an year I left it until 2006 because of family. In 2007 I came over to Forex because of some advertisings and was caught. Big Money even with small Invest everywhere in this huge market. Yep, it is, but until today not for me. Anyway, face it, within the FX Market we need a lot of Loosers because their Money goes to Winners Pocket, it´s that easy. And that´s why so many Holy Grails are thrown into the market, Machinery must go on……

So my Journey began in 2007, testing a lot of manual and auto Systems at Demo and with my own Money. Think what….. yep, lost and lost and lost. Ya, I made nice gain within but market took it everytime back, sometimes slow, sometimes more quick. I had an MM, for shure, but if you have only small money to invest you need to do at least 2 things if you wanna make more money: stick to your system and use some high risk to raise up your account balance accordingly or put some of the money into new Systems……. This sounds familiar to you? Ya…….

So after a long time of experimenting, trying, searching, testing I found my systems I need to start my diary for this.

Small Traders Dream – means start trading with very small money trying to reach the Dream of having enough money within 2 years to quit the job or easily afford nice things like vacation, a new car or whatever.

So today I start my diary in here for an introduction what for it is and how I will set it up.

Setup

I have 3 different Trading System, fourth is in the pipeline and time will tell if I use it too. Ok, now 3 Systems. Because this is Small Traders Dream I start with an Account Balance of €250,-

This an amount any Small Trader or Beginner should have for an start. So I will trade this one up with an higher Risk of around 20%, well Market could earth the account if he wants to because of no S/L but I can intervent anytime, so as market has shown 20% is the average risk for this start. If Account doubled I set back risk more and more ……. because I did spent enough time of earthing Accounts. First Account is trading CFD using an Gap Strategy…

So after a while Account should goto at least 1.5k / 2k for taking out money and setting up 2^nd Account.

This Account already runs with $100 funded for showin up performance…. This is an Hedging, Grid & Martiangale System. Starting then with an 1k Balance this means High Risk again but when Balance grows Risk will be reduced because of this gives the Chart an much wider Range for his moves….

3^rd System will be setup then too with 1k balance. It is same system as the one before, so the Hedging, Grid & Martingale is same but I put 2 scalpers into it too for more performance….

So this is my Small Traders Dream…

I will do the daily input here and within my blog. You are very welcome to leave comments about it.

Start for first Account trading CFD should be tomorrow, Thursday March 7^th.  My Broker for this is ActivTrades….

Always good trading

Dirk