Wednesday, August 3, 2011

Portfolio Management: 5 - Trading

"Will there be dinosaurs in your dinosaur park?"
Jurassic Park

Will there be trading in your trading blog?
For a three part portfolio there hasn't been even talk about trading. Lets change that...

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

I debated back and forth quite a bit actually on when to start talking about trading. Not that I do not want to share but do I 
A: Wait to have done my Forex demo trading before sharing and thusly skip by any mistakes? or
B: Share as I go along going through the newcomer to the forex market

I went with B because well... that's what this blog is about. I understand that I open myself up to public errors and mistakes but you know what?  That's what this entire blogging venture is about. Sharing my process with others. If I am showing my thought process and steps publicly that lead to losses and errors then that will have 
a bigger impact then me just saying "Don't do that".

Along this theme I will be creating a trading system from scratch. My stock option trading was mostly centered around fundamentals added with simple support and resistance. For Forex though I want to add in some more technical tools. I'll be testing and evaluating Stochastics, RSI, and MACD.

Evaluating? I prefer to dig into something and really learn and look at how something works. Its one thing to read in a book or watch a video saying "Do this with RSI" but to trust my portfolio's money with it? Thats something different.

Thinkorswim allows Forex trades in 10,000 sized lots. That's going to be around $300 needed in a trade with their leverage. If I want to keep it at 20% leverage of my overall account I will need $1,500 before I can think of trading. Probably more for me to be safe. To be honest some more with you guys... that isnt going to take place until next year.

Yep no trading until 2012. Now that does not mean nothing will happen for trading in the next 5-6 months. I have a lot of work to do demo trading before I am comfortable with whatever training system comes up for the Model Portfolio. More on that later.

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others.
I am not a financial planner, financial advisor, accountant, or tax advisor. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets

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