Portfolio Management stop on Forex trading

I knew that 4 losses to start off June was a bad sign...

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.

So I have to stop trading for the week which means no trades today or tomorrow. If I was trading live money the next deposit would have to go into the Trading account to ensure that it grows. That is very critical at this point. Otherwise I could be trading making $5 here and $2.50 there for quite awhile. By having the deposits cover strings of losses I will still be increasing my portfolio while I am learning. Once I deem myself ready to trade with real money the learning process doesn't stop. It takes years to master a skill and the markets are always changing. I know a commodity trader who has been trading for 16 years starting up Forex and still learning.

As I mention in the video, I do want to hear your ideas on future Trading account rule changes. Hitting the $3,500 mark isn't as far off as it sounds. If I push hard that could be 3 months with the extra monthly deposits.


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 adviser. 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.

May Forex Trading update

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.

Overall I am pretty happy with how May went. June is starting out rough with 4 losses in a row.

In the past that would have distracted me, bummed me out, perhaps even made me start questioning myself and what I was doing. After having the string of losses from my coin flip experiment its a lot easier to handle now.


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 adviser. 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.

What to do when you have a "bad" trade

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 placed the word bad in the title in quotes for the same reason I did it for the bad investing video. A losing trade where my account has a loss of money is not a bad trade it was a losing trade.
As traders we will have losses. We do our best to plan the trade and predict the market direction and we will be wrong. That can be calculated in. What can be controlled and needs to be controlled is making stupid choices that we know we shouldn't

While this trade was important and shouldn't be blown off as no big deal it also shouldn't be made more then it is. It was one bad trade. It was a learning experience which is what the demo account is for. You can be sure I will take this trade with me for quite awhile.


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 adviser. 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.

Stops and Trailing Stops

My testing with demo trading the Forex is going well. I think I've resolved one of the last few issues I am having...

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 listed three ways to set a stop but there are many others. The main thing we want out of a stop is a predetermined point where we exit the trade without making it worse. Stress on the predetermined part. It has to be figured out and set before we get into the trade because once money is on the line emotions take over. When that happens we just justifying and sometimes lying to ourselves about what a good stop would be.


Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others.
I am not a financial planner, financial adviser, 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

Week 25 Deposit and Forex Trading Update

Time for another deposit into the Model Portfolio. I also give an update on why there has been no talk of trading.

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'm not too proud to admit that Oanda and Metatrader4 are currently defeating me. I really hadn't expected this many problems because it seems that everyone are using these two. Thusly I have to think the problem lies with myself and its something I have to work through.  I do keep eyeing TDAmeritrade though. They seem to be getting their act together and I may move back to them. Time will tell. Whichever I go with though... its time to get this trading show on the road!

In the video I mention that I am getting an extra $0.02 but only 1 is shown here. O and PCY each have $0.005 and that is being rounded down by Google Docs for each one thusly that $0.01 is "lost" in the total.
Its a display issue only and if I change the columns to 3 decimal points everything adds up.
Keeping track of stats and the math is important but.... its only half a penny.  Since its only a visual issue and the math still holds I plan to leave it.




Weekly Activity
$100 deposit into Investing

Model Portfolio Totals

Trading Account: $300
Estimated Monthly Income: $0 (Not ready to trade until Phase 1 completed)
Max amount in Forex trade (20% of account): $60
Max loss per trade (2% of account): $6

Investing Account: $1,535.65
Estimated Monthly Income: $5.76
Stock
Energy
     ERF: $1.68 income/month
REITs
     O: $1.06 income/month ($0.005 from DRIP shares)
Bonds
     JNK: $1.85 income/month ($0.012 from DRIP shares)
     PCY: $1.17 income/month ($0.005 from DRIP shares)
     TLT: $250 reserved for future purchase
Maneuvering Cash: $310.03

Savings Account: $600
Emergency: $500
Portfolio Protection: $100
CDs: $0
Precious Metals: $0


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 adviser. 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.

Listing out the Goals of the Trading Account. Phase 2

While I do not have solid data to estimate how I will do in the future I have to start with as close a guess as I can and then as trades and data come in I can refine my future profit estimates...

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.

Wow. So yeah there you have it. The Model Portfolio will "fail". My current estimates show that I cannot meet my goal of generating income to cover bills for the Model Family, with my current level of contributions, within 15 years. I placed the word fail in quotes because as I discussed in the video, is it really failure? I am not only talking about dollar goals either.

There is something to be said for how one lives their life. I'm a big believer in motivational thinking. I could go off on entire blog and video series on the topic... and I probably will. For now though think about this...
As we grow up to becoming an adult we have teachers, guides, and lessons that we learn to shape who we are as a person. These impact our lives and shape our personalities and who we are as a child changing into a teenager into an adult.
Why do some believe that process stops when you become an adult? The process or how our thoughts and focus and what we spend our time doing altering and defining who we are as people.

More specifically to how this relates to the Model Portfolio: when we allow ourselves to slip into a mindset of life being...
1: Go to work.
2: Work.
3: Come home and get ready for step 1 tomorrow.
Then of course our personality and belief system will eventually shift towards that. It eventually becomes automatic. Sub-conscious. We then fall into what I describe in the video where 15 years from now I ask myself what would have happened if I tried... then get back to work.

The Model Portfolio will bring in benefits to my life beyond what cannot be measured in numbers with % or $.


Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others.
I am not a financial planner, financial adviser, 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

Listing out the Goals of the Trading Account. Phase 1

With the goals of the Investing account defined we can focus on the Trading account...

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 want to expand more on Time as a resource for the trader and investor. As I mention in the video, we can add more money through deposits.  We can also start our record for successful trades and numbers for trading.We can read new books and watch new videos and learn from past mistakes. What we cannot do is get back the one natural resource that every person has. Time.

I spent a year stuck in "Analysis Paralysis". Planning how I would trade and invest. I thought I had to get all of my money first before I could start but funnily enough never had $10,000 lying around. I found myself worried that I might be missing something when in the end I did. I missed out on opportunity by inaction.

The advice given out in the financial world seems contradictory at times. Don't over trade, but if you never trade you never make profits. Learn and understand money management and risk management, but again you have to trade and make mistakes to learn some of it. I've even done it several times in my videos to you guys. When everything is said and done though at some point you have to roll up your sleeves and jump in. Hopefully my videos and blog entries help in that.


Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others.
I am not a financial planner, financial adviser, 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