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


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