Monday 21 May 2007

Adventures in Day Trading - 13

Lucky 13! I dived back into forex trading with the last $700 out of my initial $2000 kitty. I lost a quick $135 on a sudden move the wrong direction, then bought the AUD at 0.8251 which was close to the bottom of recent trading ranges. I hung on through a couple of down turns to under 0.8200, but today the bottom dropped out of the AUD (or the USD suddenly gained support - I never know which until after the event), and CMC Markets automatically liquidated my position when my account balance dropped to less than US$200. I can't trade even a $50K position with a balance under A$500, so I won't be trading for a while, if at all. My initial plan was to "play" with $1000, but I soon had to add in another $1000 in order to trade, after my initial quick losses. If I add further funds in I'm in danger of throwing good money after bad - and developing a gambling addiction! The total loss of $2000 isn't material to my overall net worth, but it is still significant (and unpleasant). I took me a lot longer to decide to spend $1800 on a new computer system than it took to lose a bigger amount day trading. Day trading is definitely playing with fire.

Enough Wealth

2 comments:

mOOm said...

Sorry to hear about the losses... it is just gambling if you don't have some kind of technical analysis, model, and money management system. I tried AUD futures also and decided that it was too scary. Sticking with my stock index futures where I have a model - it's actually not daytrading. Some times I do some stock daytrades too. Mostly related to earnings etc.

Gantulga T. T./T.Т.Гантулга/ said...

Hmm, burning your fingertips? Better luck and info next time, AUD, JPY like a wildfire. You've got any background on this field? Try Disciplined trader for a good reading material