Afternoon all.
Alongside the development of my trading strategy in recent months I have been looking closely at WHY I'm trading.
Almost every day I hear someone say 'if only I won the lottery', and I think no, no they have it all wrong. To live like a millionaire is to do what? For me it means travelling maybe a third of the year, buying a new car (a Nissan, so nothing too dear), and having some fun. That does not take a million pounds. Much less in fact.
I decided to work out how much my dream lifestyle would cost per year and worked it backwards through my strategy to calculate the investment and margin requirements to achieve that level.
My strategy currently returns an average of 10 points per day, although I have only been running with this specific iteration for a couple of months.
If anyone is interested the number I came out with was £45 per pip on GBP/USD (I use a spreadbetting broker in the UK). This takes into account trading for only 2/3 of the year leaving me free to travel for 1/3 of the year. It will take a while to get to that level, but I have it there as an end goal for 12 months time.
Obviously the one variant is the success of the strategy longer term, and more importantly the effect of losses on the profit.
The key to my strategy is that I only trade from 6am to 8am in the UK so that I can tie it in with my current job. The idea is to eventually step down from the job and run with this using the same trading hours, but use the new found spare time to enjoy life
Is this common, and has anyone got any stories of successful (or failed) implementation of such a structure?
Trading for me is not just about sitting in front of a computer all day, it has to have an end product beyond money. For me, the idea would be to pick a lifestyle and to be able to live it - freedom of time.
An interesting book for all you budding FX traders is 'The four hour work week' by Tim Ferriss. It's certainly not a book on trading, but it does offer an excellent insight into how to get the most out of life by designing your lifestyle as I have mentioned.
I'd be interested to hear your thoughts and any input you may have.
Thx
Monk
Alongside the development of my trading strategy in recent months I have been looking closely at WHY I'm trading.
Almost every day I hear someone say 'if only I won the lottery', and I think no, no they have it all wrong. To live like a millionaire is to do what? For me it means travelling maybe a third of the year, buying a new car (a Nissan, so nothing too dear), and having some fun. That does not take a million pounds. Much less in fact.
I decided to work out how much my dream lifestyle would cost per year and worked it backwards through my strategy to calculate the investment and margin requirements to achieve that level.
My strategy currently returns an average of 10 points per day, although I have only been running with this specific iteration for a couple of months.
If anyone is interested the number I came out with was £45 per pip on GBP/USD (I use a spreadbetting broker in the UK). This takes into account trading for only 2/3 of the year leaving me free to travel for 1/3 of the year. It will take a while to get to that level, but I have it there as an end goal for 12 months time.
Obviously the one variant is the success of the strategy longer term, and more importantly the effect of losses on the profit.
The key to my strategy is that I only trade from 6am to 8am in the UK so that I can tie it in with my current job. The idea is to eventually step down from the job and run with this using the same trading hours, but use the new found spare time to enjoy life
Is this common, and has anyone got any stories of successful (or failed) implementation of such a structure?
Trading for me is not just about sitting in front of a computer all day, it has to have an end product beyond money. For me, the idea would be to pick a lifestyle and to be able to live it - freedom of time.
An interesting book for all you budding FX traders is 'The four hour work week' by Tim Ferriss. It's certainly not a book on trading, but it does offer an excellent insight into how to get the most out of life by designing your lifestyle as I have mentioned.
I'd be interested to hear your thoughts and any input you may have.
Thx
Monk