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(can) small accounts make a living ?!

  • #301
  • Mar 10, 2009 2:16am Mar 10, 2009 2:16am
Quoting jebon2288
Hello to all & thread starter, H. Rearden..I'm currently trading with USD1500 FXCM Micro account..it has come to almost 3 years now since I first took off for an actual trade..just recently to realize the 'myth' on using only certain amount to open position..like only 2% as an example..

As for loosing off my emotional fear,I cash out everyday till overcome my USD1500 so as to make my account & my trade equal to free trade..meaning that I wont loose any money now bcoz I already taken back my cost earlier..
Hi Jebon2288,




I'm too building my FXCM micro account. so far so good the % of growth.
Your results/gains amazed me just with a small account &
u r now in consistent profits & already in 'free risk' money to trade.
3 years of hardwork really pay-off ya! It's a great example for ppl starting
with small account. Congra!

(I should ask these in PM but can't, ur PM is not yet ready)
Just a quick question about FXCM's total withdrawal fees/charges:-
- eg, if u withdraw via bank-wire USD500 from ur micro a/c,
i know FXCM will charge USD25 for 1st withdrawal,
r there any ADDITIONAL charges? eg, interbank-wire fees
around USD20 -USD25?
So, what's the net amount u got bank wired to ur local(Malaysia) bank. eg.
Maybank?

Thanks. sorry for asking this non-related-sub question here.
  • #302
  • Mar 10, 2009 8:30am Mar 10, 2009 8:30am
Good afternoon.

For the readers who would lile to follow the $10K test account set-up for this thread, I will post an 'update statement' and will continue on a weekly basis until the end of march, maybe a little longer if the interest warrants it.

I am aware that it should usually be placed in the 'journal' department, but since it has more to do with the original intentions of the thread (to show whether it is possible to make steady money from 'small' accounts), I will keep it here.

A word to current results: there were more opportunities than taken and some of the opportunities could have been 'milked' for higher profit. We have not done this for several reasons.

1) to show that with relatively little effort targets (in our case 0.5% daily profit on average) can be achieved.

2) to show that - as long as you control your risk - you do not have to let you profits run as far as you might pressure yourself to do. If you are the person that has the ability not to take profits when they are there but let positions run for the maximum possible gain, good for you - you are already a big step ahead of most. Most are more concerned with the idea of not bleeding capital at that stage.

3) to show that trading, specifically intraday-trading, does not have to be as stressful as people might believe.

Don't forget that once you feel confident enough and your results will prove or disprove the right time for it, you can always up your game.

In terms of results, we are on day 7 out of 22 trading days for March and almost at the half-way mark of 5%.

H. Rearden
Attached File(s)
File Type: doc Interbank FX Mar09.doc   122 KB | 903 downloads
  • #303
  • Mar 10, 2009 10:19am Mar 10, 2009 10:19am
hi h. rearden,

could you talk about the difference dome and live trading? what's your own experience? what's your advise for people looking to make the change from demo to live? can't pm you as i've just signed up. so would you add your preffered broker in your profile. thanks
  • #304
  • Mar 10, 2009 11:09am Mar 10, 2009 11:09am
Ok,

I never traded a demo - that was for two reasons:

1) when I started, there were no demo's (at least not that I heard of)

2) I wanted to make money - you can't do that with a demo account

As for broker preferences, I use a company called deal4free - I think they are better known as CMC these days. Never had a problem.

About demo trading itself: it is a great tool to test strategies which are at that point unfamiliar in terms of sustainability - it as also a great tool to backtest fully mechanical methods. But as both imply, they are 'tests' only and don't encompass the emotional aspects of trading. So, while they are helpful in some ways, they are dangerous in others - especially for the new trader who has yet to explore the effects of life-trading on his/her mind.

H. Rearden
  • #305
  • Mar 10, 2009 11:38am Mar 10, 2009 11:38am
Thanks Master Reardon - much appreciated; I am sure there are many listening should you have more to teach us...
  • #306
  • Mar 10, 2009 2:11pm Mar 10, 2009 2:11pm
Quoting H. Rearden
You need to read some of the posts again. I have no targets - only expectations. Nobody ever knows how far a trade will go in your favour; you have to apply your own judgement for how long you want to hold on to it.

Good luck.

H. Rearden
Thank you. I did read your posts again but I could not find the answer in this now long thread (20 pages). My own judgement is based on some analysis and I suppose yours too. Your expectations are probably based on some facts, technical criteria, visual landmarks, expectations regarding gains, etc. Or is it just when you 'feel' it ?
  • #307
  • Mar 11, 2009 1:26am Mar 11, 2009 1:26am
thanks for your input, mr rearden.
  • #308
  • Mar 11, 2009 10:55pm Mar 11, 2009 10:55pm
Hi All,

Quick question, what Stoch settings is Mr Rearden using? I saw on one of his past pictures of his charts it was 300/9/9, is this correct?

Cheers
  • #309
  • Mar 12, 2009 6:32am Mar 12, 2009 6:32am
Quoting jebon2288
Hello to all & thread starter, H. Rearden..I'm currently trading with USD1500 FXCM Micro account..it has come to almost 3 years now since I first took off for an actual trade....
..
Hi jebon, you said, in another thread:

"there's obvious indications b4 any major breakouts"

Do you mind to explain this better?..
  • #310
  • Mar 12, 2009 8:39pm Mar 12, 2009 8:39pm
Quoting macockiner2
Hi All,

Quick question, what Stoch settings is Mr Rearden using? I saw on one of his past pictures of his charts it was 300/9/9, is this correct?

Cheers
Yes. 300/9/9
TRO
  • #311
  • Mar 12, 2009 8:42pm Mar 12, 2009 8:42pm
If you want to make use of indicators, it is always a good idea to check out their ingredients - what are the calculations based on? In one of my two own approaches, I am looking for for new high's (low's) - therefore, an indicator like stochastics 'indicates' areas where it has calculated overbuying (overselling) levels. Ultimately, I take the trade based on a real high or low since the indicator will at times show overbought/oversold levels while the price is still in a range - basically a false signal. When the signal of the indicator and the price show the same, and on more than one time frame, then it is usually time to act. So, make sure if you want to use the help of indicators, you pick them in accordance with the concept of your strategy and moreover, know what the calculation base is for what the indicator shows a signal.

- H. Rearden

Thanks for posting that.
TRO
  • #312
  • Mar 12, 2009 9:03pm Mar 12, 2009 9:03pm
“Notice how the right leverage can be very effective?” When I nod “yes,” he adds, “If you’re moved to help others, by all means do so. But also do the work on yourself so that you’ll develop the clarity to know how to exert the right leverage at the right place at the right time.”

- Socrates in The Way of the Peaceful Warrior
TRO
  • #313
  • Mar 13, 2009 8:42am Mar 13, 2009 8:42am
Good afternoon,

As announced earlier this week, here are the Friday results of the test-account. Again, as in previous sessions, some trades could have been pushed for higher profits and more experienced traders would have done so.

We are rather trying to establish a 'relaxed' trading approach, one that is achievable for the newer trader without having to be glued to the screen all day.

It is day 10 out of 22 trading days in March and we are at ~7% profit for the month, which means we have a full 12 days to achieve another at least 3% return.

Being ahead of target, I wish you all a great and deserved weekend.

H. Rearden
Attached File(s)
File Type: doc Interbank FX Mar09.doc   151 KB | 615 downloads
  • #314
  • Mar 13, 2009 11:05am Mar 13, 2009 11:05am
Hi H. Rearden,
I'm studying your mtf stoch trading method trying to grasp the basic concept but looking at your report there's some trade that I don't understand why was opened.
For example this one :

60905259 2009.03.12 11:57 sell eurusd 1.2809

In below screenshot I put three stochs using an mtf stoch indicator just to have all of them on the same M1 charts. It seems that only M1 was overbought while M5,M15 were in the no-man land between 20 and 80.
Did you took that trade following some different rules ?

Thank you
Skyline
Attached Image (click to enlarge)
Click to Enlarge Name: 13 ott 2008.gif Size: 28 KB
  • #315
  • Mar 13, 2009 11:11am Mar 13, 2009 11:11am
same here
Attached File(s)
File Type: doc Interbank FX.doc   77 KB | 435 downloads
StopLoss is for none belivers... Trust the Gurus..
  • #316
  • Mar 13, 2009 12:10pm Mar 13, 2009 12:10pm
Skyline,

I totally agree that the entry was premature. Then again, nobody is perfect and I am the least perfect.

But - and that is based on my own feeling - when I manage a trade, the primary objective is not to lose money beyond my risk parameters, in this case 2% or 40 pips (which dictated an ultimate stop at 1.2849).

In my mind (and that differs greatly from others), I go actively through the choices available to me: leave the trade and see how it pans out, or place another trade higher up (if I still believe that the forthcoming direction is down in our case AND I have room on my daily risk limit, of course).

The Stoch's as you can see on the attached chart are good to go on the M1. Since they only show overbought in that TF, I have low expectations and take profit early - too early in this case, but hey its money.

If the higher TF's would have also shown overbought, I might have kept the trade going for longer. But could, would and should are irrelevant when your in a trade and you have to make decisions there and then. The early morning movement showed some resistance and I saw that as part of the opportunity. My assessment was that my risk is within normal parameters.

Everything is fluid and while I aim for better r/r, you are not always presented with what you aim for. Sometimes, during a trade the perspective changes from having a firm conviction that it will play out great, to aiming to get away without losing and maybe getting a small reward.

I firmly believe that it is wrong to stop caring about a trade once you're in it - unless you run a fully mechanical method that dictates to ignore the market after entry until exit parameters are hit.

I run this account discretionary - so signals have to be interpreted individually - which means that 2 traders see the same signal but act upon it in a different way.

Hope that explains your question.

H. Rearden

P.S. The follow up long signal 2 hrs later was much better - I went into the swiss situation instead though.
Attached Image (click to enlarge)
Click to Enlarge Name: rearden m1 120309.gif Size: 24 KB
  • #317
  • Mar 13, 2009 12:22pm Mar 13, 2009 12:22pm
Quoting H. Rearden
Skyline,

I totally agree that the entry was premature. Then again, nobody is perfect and I am the least perfect.

But - and that is based on my own feeling - when I manage a trade, the primary objective is not to lose money beyond my risk parameters, in this case 2% or 40 pips (which dictated an ultimate stop at 1.2849).

In my mind (and that differs greatly from others), I go actively through the choices available to me: leave the trade and see how it pans out, or place another trade higher up (if I still believe that the forthcoming...
Thx for your exaustive reply

Have a nice weekend,
Skyline
  • #318
  • Mar 13, 2009 1:47pm Mar 13, 2009 1:47pm
Quoting H. Rearden
Skyline,

I totally agree that the entry was premature. Then again, nobody is perfect and I am the least perfect.

But - and that is based on my own feeling - when I manage a trade, the primary objective is not to lose money beyond my risk parameters, in this case 2% or 40 pips (which dictated an ultimate stop at 1.2849).

In my mind (and that differs greatly from others), I go actively through the choices available to me: leave the trade and see how it pans out, or place another trade higher up (if I still believe that the forthcoming direction...
Are you using Heiken Ashi candles?
TRO
  • #319
  • Mar 13, 2009 2:04pm Mar 13, 2009 2:04pm
No.

They would show the candle's average price instead of the actual price.

H. Rearden
  • #320
  • Mar 14, 2009 3:25am Mar 14, 2009 3:25am
Hi Mr Rearden

Just a quick note to say that I've just found and read all of your thread. Even though I'm late to the thread, I'm grateful that you took the time and effort to share your experience in this way.
I am at a stage where I'm reflecting on fairly lack lustre performance so far, and your thread has been a great recap of much I have heard but not learned in the past.
Thanks
Jellybean
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