Hello Hive,
Hope you are doing well. :) I won my first (hopefully first of many) real money trades. I wanted to share it with all of you and don't be shy to comment or ask anything.. I really enjoy discussing it with anyone.. :)
So, I guess I should start with a brief personal history.. I started learning trading after reading this cheesy, little book I got in the mail. The title was 'The World's Most Powerful Money Manual' or just TWMPMM for short. :P It was crap, but interested me enough that I did get the full book course. Btw, this was about trading futures commodities.. (corn, soybeans, gold, and others)
I did try futures (lost a bit), but perhaps I was not so good at that time due to just being an impatient young man, or maybe futures was not a good fit for me.. Since then I have traded Forex and crypto as well. Whatever it was, however, I was hooked on trading. There's something about making money based on strategy and analysis, just you and your computer (no boss or silly co-workers, employees, customers, etc. to deal with), based on smarts and discipline, NOT hours spent or sweat equity.
I was pretty lucky (or maybe since I never had much funds to risk) that I ONLY lost a few thousand dollars since I started trading in 2001. I don't know exactly why, but covid got me to learn how to trade stock options. I started super small with just $100, but since December/2020 I managed to make small, but steady profit.
I figured the least I could do was beat what I might get with my ban.. APY of 0.05%. I think it's because I am older and wiser now, and took things serious, but not rushing, that I was able to get an ROI of 36% in 2021. In 2022 I even surprised myself and managed a 61% gain. (on my small trading account)
This year I decided to start with $1000 and see what happens. I did win 5% ($50) today, but there will be losses. Last year I ended up with a 74% win rate for trades taken. I'm assuming that I can have about the same win rate.. so I should be able to increase my account 1-2% per week. (on average.. there ARE losing weeks, but also all winning weeks, and I have never seen a losing month, at least not on options.)
Ok, so here's my trade I took this morning..
This is a heatmap indicator that I always look at. It shows the recent market movement. As can be seen by the mostly red squares, the market fell. It's a good thing I don't make my trade decisions only after looking at this because the market went almost entirely UP by the time I did my trade.
I look at the longer term trend (based on the hourly chart), then the medium term (15 minute), and finally entering when the 5 minute chart agrees with the other two timeframes.
It took just 35 minutes since caught a nice little bull action, and my closing order was triggered.
and finally
I know it's just the beginning, but it's nice to have it done and to start with a win!