Hello FF readers,
This thread is going to contain a selection of concepts which can help any aspiring trader to increase their chances of becoming profitable in this industry.
It's going to be a long read, so I'll publish it in chunks. I'll take questions along the way and answer as best I can.
- Firstly, I'll start out with a few reasons as to why this thread will add some value to your life.
If you are reading this, then you are either an aspiring trader looking for more information to help bridge the learning gap - or you are a profitable trader who is curious/sceptical about the bold thread title. I'm guessing that 99% of the readers will be in the first category so I will be writing this to benefit those who are thinking about starting trading or attempting to become a profitable trader.
- I have no product, service or system to sell. I don't believe in one specific trading method more than another. I've got no agenda or axe to grind about anyone else. This is all completely independent.
- About me
I am a private client investment manager. I advise on investments for high net worth individuals. Typically we hold positions for a minimum of 6/8 weeks, so I understand that this is much longer than most of the traders on FF - so most of the methods I use to build investment portfolios will be of no use here. This thread may touch upon specific trading systems but there will be no system or 'rules' found here. I will focus on concepts I have learnt from my years in the industry, working initially in sales - then moving on to investment management. I have the privilege of working with some outstanding traders and some of the best fund managers in the industry. I also trade my own account, and have done for five years now (I've been profitable for 3 of them...) I'm fully qualified through the Chartered Institute of Securities and Investment - I may discuss specific trades but none of these are advice or a recommendation. Everything here is just for your reading enjoyment.
My own personal trading is 90% from the daily chart using a systematic approach. I did post in another thread that I started last year where I covered all my trades in real time. I was profitable for a couple of months, showing the good and bad of my trading. It became too much effort to keep uploading videos and reporting on my trading so I let that one go quiet. I'm not going to have this thread like a trading diary - just cover some concepts. My method is still quite similar to how I was trading in my previous thread, a few money management changes and a slight tweak to entries in an attempt to remove discretion. Once again - I don't feel that I am a guru or trading expert. I have a lot to learn. But I am at a point where I can consistently profit by around 30% p/a with drawdowns very tightly controlled (<10%). Some months I will come up breakeven or at a minor loss - generally in lower volatility. High volatility I'll bring in 6-10% in a month. For a proprietary trader, this is fairly low. For someone who is building a system which requires no more than an hour of attention per day - I feel this is acceptable.
I've attached a trade explorer to my profile which is from my demo account. Everything using a 0.20 lot size is with my current systematic approach.
Down to business
Okay so over the next few days, I'm going to publish posts on the following topics
1 - Proprietary vs. Systematic: The two main styles of profitable trading for the retail hopeful.
2 - Managing your expectations: What do you want to achieve from trading and how to build a method around your goal
3 - Trading Systems: Out of the box, or build your own. Pros and cons.
4 - Technical Analysis: It works.
5 - Psychology: Sometimes dogs bite children, and sometimes you will lose money.
What do I get out of this? Firstly, it allows me to reflect on my trading and keep me on track. Also, I'd like to get some feedback from some other traders out there on what works for you and how I could see improvements. Specifically if anyone has programming ability - I'd love to hear from you on how you apply that to trading.
I hope you find this useful - and I'll publish my first topic soon.
Regards,
LT
This thread is going to contain a selection of concepts which can help any aspiring trader to increase their chances of becoming profitable in this industry.
It's going to be a long read, so I'll publish it in chunks. I'll take questions along the way and answer as best I can.
- Firstly, I'll start out with a few reasons as to why this thread will add some value to your life.
If you are reading this, then you are either an aspiring trader looking for more information to help bridge the learning gap - or you are a profitable trader who is curious/sceptical about the bold thread title. I'm guessing that 99% of the readers will be in the first category so I will be writing this to benefit those who are thinking about starting trading or attempting to become a profitable trader.
- I have no product, service or system to sell. I don't believe in one specific trading method more than another. I've got no agenda or axe to grind about anyone else. This is all completely independent.
- About me
I am a private client investment manager. I advise on investments for high net worth individuals. Typically we hold positions for a minimum of 6/8 weeks, so I understand that this is much longer than most of the traders on FF - so most of the methods I use to build investment portfolios will be of no use here. This thread may touch upon specific trading systems but there will be no system or 'rules' found here. I will focus on concepts I have learnt from my years in the industry, working initially in sales - then moving on to investment management. I have the privilege of working with some outstanding traders and some of the best fund managers in the industry. I also trade my own account, and have done for five years now (I've been profitable for 3 of them...) I'm fully qualified through the Chartered Institute of Securities and Investment - I may discuss specific trades but none of these are advice or a recommendation. Everything here is just for your reading enjoyment.
My own personal trading is 90% from the daily chart using a systematic approach. I did post in another thread that I started last year where I covered all my trades in real time. I was profitable for a couple of months, showing the good and bad of my trading. It became too much effort to keep uploading videos and reporting on my trading so I let that one go quiet. I'm not going to have this thread like a trading diary - just cover some concepts. My method is still quite similar to how I was trading in my previous thread, a few money management changes and a slight tweak to entries in an attempt to remove discretion. Once again - I don't feel that I am a guru or trading expert. I have a lot to learn. But I am at a point where I can consistently profit by around 30% p/a with drawdowns very tightly controlled (<10%). Some months I will come up breakeven or at a minor loss - generally in lower volatility. High volatility I'll bring in 6-10% in a month. For a proprietary trader, this is fairly low. For someone who is building a system which requires no more than an hour of attention per day - I feel this is acceptable.
I've attached a trade explorer to my profile which is from my demo account. Everything using a 0.20 lot size is with my current systematic approach.
Down to business
Okay so over the next few days, I'm going to publish posts on the following topics
1 - Proprietary vs. Systematic: The two main styles of profitable trading for the retail hopeful.
2 - Managing your expectations: What do you want to achieve from trading and how to build a method around your goal
3 - Trading Systems: Out of the box, or build your own. Pros and cons.
4 - Technical Analysis: It works.
5 - Psychology: Sometimes dogs bite children, and sometimes you will lose money.
What do I get out of this? Firstly, it allows me to reflect on my trading and keep me on track. Also, I'd like to get some feedback from some other traders out there on what works for you and how I could see improvements. Specifically if anyone has programming ability - I'd love to hear from you on how you apply that to trading.
I hope you find this useful - and I'll publish my first topic soon.
Regards,
LT