** You are supposed to be reading the trading data below, not looking at this pretty girlie photo!Tuesday, November 17, 2009
NUMBER #4 POSTING
AMATEUR OEX TRADER ADVENTURES INTO TRADING - RESULTS!
( Two month results - 2 months, paper trading - 64% return of the total account at risk! -- The single biggest trade, made 104% return on paper money actually used )
Method chosen: KISS ( Keep it simple stupid! )
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PHASE #1
Start time in design and experimenting of trading system. Mid June, 2009.
PHASE #2
Paper trading start of methodology Sept. 12, 2009.
Number of trades: 8 trades
Result 64% return on capital in two months ending November 16th, 2009
PHASE #3
Switch to VIRTUAL TRADING PRACTICE WITH LIVE BROKER IN CHICAGO PITS.
Restart FRESH experiment with live practice, $5000 funny money FREE ACCOUNT!
( Result so far - 1st weekend up 6% )
PHASE #4
Switch to REAL MONEY ACCOUNT with original $5000 of CASH deposit.
( As of Nov.16th, 2009 this writing - this phase has not been reached. Expect to reach the REAL MONEY trading phase #4 around March, 2010? )
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PROGRESS REPORT ON THE FUTURES/HEDGE FUND TRADING
( Searching for an adequate description?) - The rational is; that I'm losing money with SAVINGS in USA money market, savings account and Certificate of Deposits at current interest rates and with INFLATION in the USA at 7% thereabouts. Living on a FIXED INCOME is seeing my purchasing capacity declining. Must do something?)
Hectic morning on the trading for the Futures/Hedge Fund being used to balance out the very low, Money Market and Certificate of Deposits miserable returns in the USA. These are losing money at the purchasing power rate of 7% a year to inflation. My savings CD comes due this month November and I'm cashing it out and putting it in money market to feed slowly into the Hedge Fund trading eventually in PHASE #4 if we reach that far successfully? Expected to be around February or March, 2010.
Graduated Friday last, to the Virtual Trading platform, with $5000 usa of their funny money, FREE GRATIS! Got out of that trade I made, with a 6% gain, or + $330 this morning
My hypothetical paper trading is now at an end. Made over the 50% I needed to graduate into the Virtual BROKERAGE money trading with my KISS OPTION TRADING METHOD. I see I started paper trading Sept 12th. 8 trades in all! Lost at the very beginning though! Trying to use a method that has no losses. Very restrictive! I made three mistakes in the 8 trades over two months. The first loss was due to my second guessing the methodology and tweaking it with an entry that was too early. Another lower returns trade than was expected, was experienced by a second bad entry, second guessing the mechanical system. The third error was leaving on the EXIT signal too early also, and taking less profits, due to impatience and fear! Once I settled down to trusting the methodology ( KISS ) things went better with fairly mechanical ENTRY and EXITS about 95% and roughly 5% a final judgment call as to TIMING on EXITS.)( I'm learning to exit on volatility ballooning of premiums - I think? )
That paper trading in 8 trades netted me 64%, or a balance that started with $5000 usa and ended up with $8230 this morning, Nov. 15th, 2009. When I exited the remaining 3 trades that were running.
So my intention to switch from hypothetical paper trading, to virtual trading with the brokerage account worked out well, even though it was a weekend premature. The next step is to move into real CASH trading when this virtual account does 50% as a gain. Step by step, slowly, slowly! Trying to master and get control of the emotions of GREED, PANIC and FEAR. Let the system prove itself first as we go along. THE KISS MONEY MACHINE! ( laugh )
12 Sept made +$750 for balance starting with $5000 of $5730 ( -$20 commissions )
2 Oct lost -($1620) balance of $4090 in account
6 Oct +$580 with ending account balance of $4670
8 Oct +$320 with ending balance of $4990
21 Oct +$380 balance now of $5350
29 Oct + $1070 balance now of $6400
4 Nov + $1510 balance now of $7890
11 Nov ( my birthday - 72 years old ) +$360 with an ending balance of $8230
( $20 commissions deducted for each trade, which may skew the balances here )
END OF PAPER TRADING
Switch to brokerage virtual trading with funny money. Current balance $5330 starting with $5000 6% gain Nov 15 over the weekend. Nervous about the sideways action and EXITED early on a 5% methodology JUDGEMENT CALL, before actually getting an EXIT signal.
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Started the methodology experiments back in mid June/2009. Took about 3 to 5 months to work out the methodology and learn it and learn to trust it. My first loss, was because I didn't trust what I had done. I second guessed it and screwed myself.
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Going to have to buy a generator. The BEL electricity in Western Belize went off this morning in the middle of a volatile opening session. I couldn't follow it. When the electricity came back on about an hour later, the market was running away from me and the volatility and ballooning was very high. I couldn't get my websites loaded again. I got the DOW numbers off the cable TV while doing breakfast. Darned electricity nearly ruined everything. You have to sell into ballooning volatility. You get inflated premiums.
Even so, the market had started leveling off and the collapse of the premiums was already evident by the time I got into the web site, after the electricity came back on. Sold my virtual trade first. It dropped about $20 while I was trying to get it all together. With the slow dial up wireless internet, ( 115 kbps ) everything lags and takes precious minutes. ( going to buy a generator in Belmopan I guess? ) Then I exited the three paper trades I was holding to collapsing volatility ballooning. Lost something, but overall did well.
Am now into phase three, which is the move from methodology research and testing, to paper trading and now into the ( Phase #3) - Virtual Trading. Next step phase 4, will be real cash trading. Probably by March? Maybe even February?
Goal is $250,000 in two years starting with $5000 and putting additional $5000 capital periodically on a money management formula I have designed. Lots of fun, to see how we do here? ( grin! ) Hell I'm alive the adrenaline gets running and feels good mon! An old retiree needs some mental challenge!
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Informative web sites of the author trader here: "Western Belize Happenings" webpage ( use GOOGLE ) ( Over 600 reports of retirement in Western Belize, ( ETERNAL SPRING weather ) with photos. ) Also check out RETIREMENT IN BELIZE, webpage, and my home in the foothills of the Belize Alps. _______________________________________________
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