Sunday, March 1, 2015

Challenge update: First month done: +14%

Hi traders!

The first month of the new challenge to take a US$ 10,000 account to US$ 100,000 has come to and end.

It was not easy to start trading a "small account" again, we need to win right off the bat or we go under water and that's exactly what happened on our first week, we lost, but we made losses up on the 2nd week and have closed the month with a decent +14.29% profit, not bad!

Although I did expect to reach our first target at +20% on the first month, it was not possible, it's always difficult to have a flawless execution, we end up taking profits too early on some trades, mainly after a loss, when it's a must to shrug it off and continue trading, taking the good opportunities that the market gives us without skipping any of them.

That's the reason why I always put a lot of emphasis on the state of mind of the trader, a trader needs to be really cold blooded mainly after a couple of losses, most tend to skip trades and by doing that they let the winners go, if you need to make money for your expenses from a small account, oh boy! I wish you luck, that's really, really difficult to make as emotion gets in the way.

Well, now we are ready to start our second month heading to the first target, besides the current day trading system we use, we also follow a scalping system for traders who like to take several trades a day with very small risk and modest targets, we have been following the results for such system this past month and it has been making an amazing average of 25 points a week on full size!

The system is really simple to use indeed, it's hard to believe it works so well, by risking just 2 points on ES, targets range from 2 points and up depending on the volatility of the market, and, as a real Diamond Setup it has a win ratio of 70%+,  I'll let you know how we do in March.

Make sure you have a plan for trading during the month of March and act on it, there will be great opportunities in the markets as usual, trade well.

Best of luck.

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