Trading plan for DEC 2007

Hi, as I have already met the target for NOV '07, I decided to rest for the week and not think about trading. However, I could not stop thinking about setting a trading plan for next month.

 

Here is my brief plan for DEC '07

 

Balance as of today: US$5305

Target balance by end DEC: US$9000

 

PIPS and LOTS PLAN

About $4k profit.

20PIPS/day

400PIPS/month

 

10minilots per trade

 

MOST PROBABLE PIP GAIN FROM

 

EUR/USD: 150

GBP/JPY: 200

OTHERS: 50

 

 

Same strategy: MTF STOCHASTIC (more info soon in next post)

 

 

BAD agreement trade 23Nov 1335hrs -25pips/-USD125 Balance now: USD5305

I rushed into this trade as I thought the 15min would lead the way uphill and 30min/1h was already above 20line. However, the 15min failed to pull them up. In fact the 30min was going downwards. Thus this was a failed trade.

But, actually I could stay and ride this trade as the 4h stoch is moving upwards and the 1h is horizontal. As seen, the price actually increased after that. I regretted going out to fast. And lost 25pips.

2 bearish elastic, 22NOV 1310hrs and 23NOV 0145hrs, Total profit: USD970 BALANCE: USD5430

This are 2 easy elastic trades. Easily made about 1k. In only 2 days.

Bullish Agreement 22NOV 0150hrs 130/USD650 Balance:USD4460

This is a simple agreement trade, however, the 15min stoch has already passed the 80line, thus it has a higher level of risk. Nevertheless, the 30min stoch is still low, and it is moving towards the 1h stoch, thus I decide to take up this trade with 5minilots.

3 possible Agreement trades that I missed TOTAL possible pip gain:300

Here are 3 agreement trades that I missed.

The first agreement trade is the most optimum as all the stoch are neat and tight.

The other 2 agreement trades are not so good, as they are not tight.

The 15min stoch keeps crossing the 20line in the 3rd example, however, if the 1/4h stoch is still moving down, supporting downward move, it is okay to ride the 1h stoch until it recrosses 20line.

3stoch elastic 20nov 0345hrs 135/$675 Total balance: USD3810

1. Elastic trade
2. 3 tight stochs going towards the 4h stoch, should be a very strong indicator.

Lesson learnt

don't quickly close trade once the stochs reach 80 mark. Ride them since the 15stoch never cross 80 to move downwards. Ride the 1h stoch.

How am I going to earn my 1 million dollars?

You may have been wondering how I am going to earn 1 million dollars in a year. It sounds absurd and childish. However, it can be done.

My aim is to earn 400 pips a month.

So let's assume I am consistently earning 400pips for the next 12 months.

1st month, I trade 5 minilots for every trade. Profit=(#of minilots) X (pips earned).
Thus for the 1st month, I should earn 5 X 400 = 2000

For the 2nd month, I will increase my trades to 10minilots.
Profit for 2nd month should be 4000

For the 3rd month, I will increase my trades to 20minilots.
Profit for 3rd month should be 8000

By the 10th month, my trades will be 2560 minilots.
Profit for 10th month is a whopping 1024000!!!

Basically, my trades are doubled every month, thus my profits are also doubled.
But the risk remains the same since the balance keeps doubling too.

BALANCE BY THE 10th month should be $2,056,000

GOSH! That is really a unbelievable feat!
That is why I only said 1 million and not 2 million as my target to give room for some error trades.

Please don't just laugh and say this is impossible, because I am ready to show that it works.
THE ULTIMATE DISASTER OF THIS PLAN? only losing $2000(my initial capital)
BUT THE POSSIBLE PROFITS ARE TOO HIGH to ignore this plan.

Bearish elastic trade 56pip gain Current BALANCE:$3135

I will explain about the new indicator another time.

This is an example of a bearish elastic trade. It's so easy to see. The 15min and 30min stochs have turned steeply and moving towards the bigger stochs. The price will confirm go down, so I placed a sell order at that point marked on the chart. Now let's see the result in the next chart.




56 pip gain!

This trade was easy and I profitted $280 since I traded 5 minilots.

Now my balance is over $3k


The road to a million is going as plan.

Elastic trade 091107 0310GMT Balance: $2855

This is another elastic trade. Notice there are many elastic trades and most of them are profitable.

In this trade I relied on the 30min as an exit indicator which made me earn only 15pips instead of 30pips. Next time I will use 15min stoch as my exit indicator.

But the $75 profit is still nice.

15min pull power trade 081107 2335hrs GMT Balance: $2780

1. The 15min stoch moved upwards while the 30min and 1h stoch were still moving horizontally.
   
2. The 15min stoch successfully pulled the other 2 stochs to move upwards too, this indicates a successful trend upwards.
3. Thus I buy 5 minilots which netted 50pips profit

This trade gave me $250 profit

Another elastic trade on 071107 1230hrs Balance: USD $2530

What is an elastic trade?

Noticed how the 15min stoch is stretched away from the 3 bigger stochs, then it snaps back towards the 3 bigger stochs again. That elasticity gives the name elastic trade.

In this trade, I saw the 15min stoch rising towards the 3bigger stochs which are in the overbought region, this indicates a very strong mini uptrend. I quickly bought 5 minilots and made 50pips gain.

BUY: 1.4665
Closed Trade: 1.4716
Spread: 1pip

Total profit for this trade: 50*5(minilots)= USD $250

Current balance: 250+2280=USD $2530

An elastic trade on 071107 0845hrs (GMT+0)

The 5min stochastic is moving upwards, the 15min stochastic is also moving upwards towards the 30min,1h,4h stochastics which are already at the overbought region. This indicates a strong mini uptrend.

I bought 5 mini lots

Buy: 1.4625
Close trade: 1.4681

56 pips gain

Total profit= 56*5= USD 280

CURRENT BALANCE= USD 2280