I've been thinking a lot lately about MLM and how it can, or should be done. The reason I keep thinking about it is simply this: The industry of MLM (if that can be called an industry) is the only one available today to give the average individual the chance to start and have their own business without going through all the hassle of owing a traditional business, like a restaurant or something.
My big problem is how do you promote to actually find people who need what I have to offer? I have purchased leads and had some success with that, but at this time don't really have the funds to even invest in those. There also seems to be a problem with most of the people you talk to when you buy leads. Many of them have no idea what they want or what is happening when they filled out the form to find out about working at home. So when you do reach someone, you get this totally confused person who doesn't really know what they want, or doesn't remember even doing it, or they have a 'friend' who did it for them, and have no interest whatsoever in working for themselves.
Now, there is promoting through conversations. This requires that you do it every day, or you have no prospects.
I've looked at marketing online, but it seems that is an entirely different occupation. I just read a guy's ad for showing you how to market your MLM business online, and he had a real reasonable offer. I have purchased courses on how to do that in the past for as much as $500, and I just run into overwhelm. I know, it sounds like I am complaining, and I also know I need to do some things outside my comfort zone to accomplish my goals, but do I? I've gone way outside my comfort zone in the past, and it didn't work.
I have to admit that actually having a system for marketing my business online is intriguing. I think I would be willing to look at it to see if there is a relatively simple way to get started, and then build on it as I go. Maybe I'll check this guy's system out.
Saturday, December 25, 2010
Monday, August 2, 2010
A New (almost) Idea
I got a thought yesterday about the money sitting idle in our IRAs. Or, more, something I could do with it. Awhile back, when I actually had a little more money to trade, I did some experiments with trading options both ways using Google. Meaning, trading stock options on the companies. I would buy a Put (an option betting the stock will go down) and a Call (betting the stock will go up.) The stock can move 20-30 dollars or more a day, and I knew, one way or the other, this method of trading should make money. Well, because of the fairly large prices of the options themselves, and just the way I was doing it (looking at it constantly), I got scared of it.
Yesterday, I got the same thoughts about how I could do this same thing, only use lower priced stocks I found by doing a search for 'volatile stocks.' Turned out there's actually a website called 'Volatile Stocks' and it looks to be very useful in finding just the kind of stock I'm looking for. They also figure someone looking for this kind of thing is probably trading options, so there is good information about that on the website as well.
The funny thing is, I got the idea from playing a video game called Animal Crossing. In that game, on Sunday morning you can buy Turnips from Sow Joan (a pun on 'Dow Jones - ha ha) and then every day that week you ask the store keeper how much he's paying for turnips. Sometimes it's a little more, but most of the time it's a little less than what you bought them for. Once in awhile he is buying them for 8-10 times what you paid for them, and you get a huge windfall. You have to make sure you sell them to him before the next Sunday, though, or they are worthless (rotten.) Much like options. I've built up millions of money units (called Bells) doing this, and I really hardly play the game.
There are a bunch of lower priced (under $100) stocks that I can use my paltry IRA account cash to do these kinds of trades. I figure I will set up a set of rules, like any trading method, and be happy with making small amounts of profit on a regular basis. Occasionally, one of these stocks will gap or take off, and create a pretty big take for one side or the other. When I make back what I spend for the trade on one leg, I'll sell that side and wait and see if the stock reverses. If it does, there will be [more] profit for that trade. If it doesn't, the option will expire worthless. No more commission and the trade costs me no additional money. The only way I can lose is if the stock just sits there for a week. I can't hold onto this thing forever, as the options lose value as they approach their expiration date. I figure after a week or so, if it doesn't move significantly, or whipsaws back and forth, I'll just sell the set at a small loss and try again.
Today I used one of the stocks I found to trade a 'spread' in my IRA account. I think I will start a new blog, commenting on the trades I do in my account and my wife's account. I'll use this blog as a 'parent' blog to note ideas for 'offspring' money-making ideas I come up with.
Yesterday, I got the same thoughts about how I could do this same thing, only use lower priced stocks I found by doing a search for 'volatile stocks.' Turned out there's actually a website called 'Volatile Stocks' and it looks to be very useful in finding just the kind of stock I'm looking for. They also figure someone looking for this kind of thing is probably trading options, so there is good information about that on the website as well.
The funny thing is, I got the idea from playing a video game called Animal Crossing. In that game, on Sunday morning you can buy Turnips from Sow Joan (a pun on 'Dow Jones - ha ha) and then every day that week you ask the store keeper how much he's paying for turnips. Sometimes it's a little more, but most of the time it's a little less than what you bought them for. Once in awhile he is buying them for 8-10 times what you paid for them, and you get a huge windfall. You have to make sure you sell them to him before the next Sunday, though, or they are worthless (rotten.) Much like options. I've built up millions of money units (called Bells) doing this, and I really hardly play the game.
There are a bunch of lower priced (under $100) stocks that I can use my paltry IRA account cash to do these kinds of trades. I figure I will set up a set of rules, like any trading method, and be happy with making small amounts of profit on a regular basis. Occasionally, one of these stocks will gap or take off, and create a pretty big take for one side or the other. When I make back what I spend for the trade on one leg, I'll sell that side and wait and see if the stock reverses. If it does, there will be [more] profit for that trade. If it doesn't, the option will expire worthless. No more commission and the trade costs me no additional money. The only way I can lose is if the stock just sits there for a week. I can't hold onto this thing forever, as the options lose value as they approach their expiration date. I figure after a week or so, if it doesn't move significantly, or whipsaws back and forth, I'll just sell the set at a small loss and try again.
Today I used one of the stocks I found to trade a 'spread' in my IRA account. I think I will start a new blog, commenting on the trades I do in my account and my wife's account. I'll use this blog as a 'parent' blog to note ideas for 'offspring' money-making ideas I come up with.
Saturday, July 24, 2010
Back to Forex
There was a particularly interesting ad I got in my email (actually, now there has been a series of ads from different senders. They all seem to jump on the bandwagon when something intriguing comes out.) It is not available yet, but comes out Monday. It looks like a system that is similar to Bill Polous' teachings* but more automated. I may take a look at it if it doesn't require too much moolah. I realize that my ideal way of going would be to have a way of producing income and at the same time, pursuing music. That way, I would not be distracted by the 'No Crises' of the world. Let me explaining that. No Crisis is a good band, but not one I cant get excited about, because I am just along for the ride. It's Todd's baby, and he has the final say about everything. Whereas, in the Suspects, we all talk about anything that comes up and decide among us which is the best path to take. It's getting better, though, at least regarding No Crisis. The band is working and actually expanding it's club base. Rare these days. I think people don't get to hear vocalists at the caliber Katie is in bar settings much, and the rhythm section is pretty tight, if I do say so. The Suspects are still a bit lost, with regards to finding work. I have to let go the thoughts of asking myself why that is. Most of the answers I come up with are destructive. Anyway, the thing is, I would like to look at all this without the consideration of needing to make money, because the income is coming from another source, and trading would work out best for me. So, I'll be paying attention to this particular product.
*Bill teaches trading using good money management and ways of doing stops that put the long-term possibilities in the favor of the trader. Not automated at all, except really good solid rules.
*Bill teaches trading using good money management and ways of doing stops that put the long-term possibilities in the favor of the trader. Not automated at all, except really good solid rules.
Thursday, June 10, 2010
A Time of Reflection
Well, this blog kind of blew up. It does that if you don't commit to entering SOMETHING ever so often. I got disillusioned with trading after that last debacle. Also staying up until a trade at least got started was becoming a problem for me. I haven't even looked at the charts on a consistent basis for a few months now. I'm concentrating on music.
Let me update you on my 'music situation.' I am currently the bass player in a band call The Usual Suspects with a singer, Kelley, a guitar player, Tim, and a keyboard player, Joe. We have had various drummers and are in the process of settling on a new one. I am in other bands as well, but they are more for 'income' purposes and I don't have as much passion for them, probably because I don't have much input into what is going on with them.
I have been realizing lately that The Suspects lack a direction I believe is needed to become a viable band in the area. We currently do some 70's, 80's & 90's rock that is a combination of what we have done in former incarnations of the band and what Kelley brought in. Our old lead singer had an affliction, and a voice, for harder rock. Kelley is more attuned to the blues and country genres. Trying to do both the songs from the old Suspects and the new one don't really make sense, and I think confuses our audience. I want to take our set list and revolve it around Kelley's strengths.
Now music isn't exactly a great way to make an income - at least not the way I've been doing it. The pay for bands in bars has been going down over the last 30 years and it doesn't really show great signs of improving. At least, from the standpoint of doing it the way we've always done it.
I saw a video yesterday from a guy that preached, "figure out the 'why' first, then the 'how' and then the 'what.' It made sense, the way he said it. Let me put the link here for you.
I need to think in terms of WHY we do what we do. That takes some hard thought. I think I need to clear my mind of all other thoughts...
Okay - I think I've got a handle on why we do this. Music puts a great feeling in us (the musicians) when it is happening just right. We want to share that feeling with others as they watch and listen. The only way we can know people will get that great feeling is if we have it happen as close to that 'just right' as we can every time we play. Part of that 'just right' is us having a great time and feeling good ourselves about the music we are playing.
I believe we could rearrange the project - we probably should even change names, which I generally hate to do, but it looks like it might be very necessary in this case.
In talking with Cathy, we both agree that Tim and Joe may not be on the same page with regards to this as me and Kelley. Not that we can't talk about it, but I must be prepared to play with other folks, and I may not even know who they are at this point.
Both Tim and Joe are very analytical about the music stuff. I have been in the past as well. That is probably why the three of us worked so well together. Lately, I have been finding a spiritual part of music that is taking me in a different direction. Kelley has much of that spirit in her. I'm not sure how that equates to actually putting the band together, but I know it has a bit less to do with the particular songs we play and more with how we play them. (It does have a little to do with the songs themselves, I think. Maybe not :)
I would like to do a bunch of songs that would promote good feelings in people, not just be concentrating on whether they are dancing. One may result in another - it's the intent that is changing. I want to market the band to a different set of venues where the good feelings would be received with the most, well, feeling!
Kelley is out of town right now - her mom died and she had to go back to Ohio (strangely, that's one of the songs I had in mind) to take care of the arrangements.
All this may lead to Kelley and I parting ways with Joe and Tim, depending on how all this works out. I don't know. All I know is some different stuff is going to happen and it's going to take a lot of work (albeit enjoyable work!)
Let me update you on my 'music situation.' I am currently the bass player in a band call The Usual Suspects with a singer, Kelley, a guitar player, Tim, and a keyboard player, Joe. We have had various drummers and are in the process of settling on a new one. I am in other bands as well, but they are more for 'income' purposes and I don't have as much passion for them, probably because I don't have much input into what is going on with them.
I have been realizing lately that The Suspects lack a direction I believe is needed to become a viable band in the area. We currently do some 70's, 80's & 90's rock that is a combination of what we have done in former incarnations of the band and what Kelley brought in. Our old lead singer had an affliction, and a voice, for harder rock. Kelley is more attuned to the blues and country genres. Trying to do both the songs from the old Suspects and the new one don't really make sense, and I think confuses our audience. I want to take our set list and revolve it around Kelley's strengths.
Now music isn't exactly a great way to make an income - at least not the way I've been doing it. The pay for bands in bars has been going down over the last 30 years and it doesn't really show great signs of improving. At least, from the standpoint of doing it the way we've always done it.
I saw a video yesterday from a guy that preached, "figure out the 'why' first, then the 'how' and then the 'what.' It made sense, the way he said it. Let me put the link here for you.
I need to think in terms of WHY we do what we do. That takes some hard thought. I think I need to clear my mind of all other thoughts...
Okay - I think I've got a handle on why we do this. Music puts a great feeling in us (the musicians) when it is happening just right. We want to share that feeling with others as they watch and listen. The only way we can know people will get that great feeling is if we have it happen as close to that 'just right' as we can every time we play. Part of that 'just right' is us having a great time and feeling good ourselves about the music we are playing.
I believe we could rearrange the project - we probably should even change names, which I generally hate to do, but it looks like it might be very necessary in this case.
In talking with Cathy, we both agree that Tim and Joe may not be on the same page with regards to this as me and Kelley. Not that we can't talk about it, but I must be prepared to play with other folks, and I may not even know who they are at this point.
Both Tim and Joe are very analytical about the music stuff. I have been in the past as well. That is probably why the three of us worked so well together. Lately, I have been finding a spiritual part of music that is taking me in a different direction. Kelley has much of that spirit in her. I'm not sure how that equates to actually putting the band together, but I know it has a bit less to do with the particular songs we play and more with how we play them. (It does have a little to do with the songs themselves, I think. Maybe not :)
I would like to do a bunch of songs that would promote good feelings in people, not just be concentrating on whether they are dancing. One may result in another - it's the intent that is changing. I want to market the band to a different set of venues where the good feelings would be received with the most, well, feeling!
Kelley is out of town right now - her mom died and she had to go back to Ohio (strangely, that's one of the songs I had in mind) to take care of the arrangements.
All this may lead to Kelley and I parting ways with Joe and Tim, depending on how all this works out. I don't know. All I know is some different stuff is going to happen and it's going to take a lot of work (albeit enjoyable work!)
Thursday, February 11, 2010
Blowing it open, to the negative side
I got a bit disillusioned, obviously, with the system I was using. I could tell that it was not anywhere near flexible enough to effectively trade a market. Now I've gone completely to the other side and started just looking at the situation with the chart, and doing an impromptu trade from what I think I see. The problem is, I quit observing what is actually going on in my head or the chart and just putting something on. Doesn't work too well. Today I put on about 7 trades, I think, and lost 4, and the other 3 were just small gains. I kept doing the same thing over and over again. Going against the trend in the market, which can be okay, but you need to REALLY look at what's going on. I kept putting on a trade, losing, and then doing the same thing again. I did that like 4 times in a row before finally saying to myself, "I think I better go write in the blog before I go through my entire account.
Now I know everyone says, "you need to establish rules in your trading and STICK TO THEM!" What I think has to happen first is you need to become a good observer, not only of the markets, but of yourself. Otherwise, you'll never realize you are breaking your rules. You just go about your business and start getting madder and madder and not understand why, and when that happens, you get even worse at what you are doing.
Today I was establishing rules in my mind as I was trading, and breaking them almost within the same minute. I have a few hard and fast rules that did definitely save me - one of which is my max stop loss amount. I know I can't change that, because it is tied to the amount in my account. It let me make quite a few mistakes, and still have a substantial amount left to make more mistakes another day (or not!) By the way, that's the only way you learn, you know. Of course, if you have too many lessons in one day, there's no way you're going to remember them all.
Now I know everyone says, "you need to establish rules in your trading and STICK TO THEM!" What I think has to happen first is you need to become a good observer, not only of the markets, but of yourself. Otherwise, you'll never realize you are breaking your rules. You just go about your business and start getting madder and madder and not understand why, and when that happens, you get even worse at what you are doing.
Today I was establishing rules in my mind as I was trading, and breaking them almost within the same minute. I have a few hard and fast rules that did definitely save me - one of which is my max stop loss amount. I know I can't change that, because it is tied to the amount in my account. It let me make quite a few mistakes, and still have a substantial amount left to make more mistakes another day (or not!) By the way, that's the only way you learn, you know. Of course, if you have too many lessons in one day, there's no way you're going to remember them all.
Friday, February 5, 2010
Back from our trip
We got back Sunday from driving to Pennsylvania. There wasn't really a funeral and all the details had been taken care of before hand, so there wasn't really a lot to actually do, as when Cathy's brother got burned last spring and we went to help him get better.
We stayed at Cathy's sister's house, which has no internet connection. They used to, but opted, for financial reasons, to keep cable and cancel internet. So, obviously, I couldn't trade during those two weeks, but after I got back I, as closely as I could, tracked what happened those days. Not much good. I've now had 9 losses without a win, and only four break-evens since the last winning trade. Last night I decided to change the system just a bit. I am changing the 1-pip cushion on each side to 7 on the short side and 9 on the long side. I had already added about 2 and a half points to the long side because of the spread, against the advice of the author of this trading plan. Last night's trade would have been a break-even either way. I just noticed that so many of the trades were going down (or up) and just barely grabbing the entry and reversing. I don't know if that is because of a lot of people trading this method or if the author is just full of bullshit about the claim that this method works. It's all I've got right now, though. I'll practice trading this way for a month or so and see if it works. I'm obviously quite a ways off from being able to trade live. That's okay. It will be a couple months at least before I can add to my account. That trip set us back more that $500 at least. I'm not sure we'll be able to pay our mortgage on either property this month. We might take the money and file bankruptcy.
We stayed at Cathy's sister's house, which has no internet connection. They used to, but opted, for financial reasons, to keep cable and cancel internet. So, obviously, I couldn't trade during those two weeks, but after I got back I, as closely as I could, tracked what happened those days. Not much good. I've now had 9 losses without a win, and only four break-evens since the last winning trade. Last night I decided to change the system just a bit. I am changing the 1-pip cushion on each side to 7 on the short side and 9 on the long side. I had already added about 2 and a half points to the long side because of the spread, against the advice of the author of this trading plan. Last night's trade would have been a break-even either way. I just noticed that so many of the trades were going down (or up) and just barely grabbing the entry and reversing. I don't know if that is because of a lot of people trading this method or if the author is just full of bullshit about the claim that this method works. It's all I've got right now, though. I'll practice trading this way for a month or so and see if it works. I'm obviously quite a ways off from being able to trade live. That's okay. It will be a couple months at least before I can add to my account. That trip set us back more that $500 at least. I'm not sure we'll be able to pay our mortgage on either property this month. We might take the money and file bankruptcy.
Monday, January 18, 2010
Dry spell
It's tough to have a dry run when you are just starting something. There is the tendency to think it doesn't work. Even though that may be the case, I'm am going to stay with the assumption that it will work and this IS just a dry spell. I went through four break evens in a row last week, but last night I had another loss. It barely got through the sell signal and reversed. Unfortunately, it took 2 hours to stop out.
I am starting to pay attention to the market and when it shows an obvious resistance or something of a breakthrough, I'm going to start playing it during the day. If I don't see anything obvious, I'll leave it alone. I have such a play today, so I set up an order to go long if it breaks through a particular price barrier. I'm not doing a different trading strategy - just paying attention and seeing if that pays off.
We're getting ready to drive to Pennsylvania. Cathy's dad passed away. We'll be there for a couple weeks. I'm going to do my best to set up the software in the laptop so I can trade while I'm out there...And, of course if I do I'll keep you up to date on what's happening.
I am starting to pay attention to the market and when it shows an obvious resistance or something of a breakthrough, I'm going to start playing it during the day. If I don't see anything obvious, I'll leave it alone. I have such a play today, so I set up an order to go long if it breaks through a particular price barrier. I'm not doing a different trading strategy - just paying attention and seeing if that pays off.
We're getting ready to drive to Pennsylvania. Cathy's dad passed away. We'll be there for a couple weeks. I'm going to do my best to set up the software in the laptop so I can trade while I'm out there...And, of course if I do I'll keep you up to date on what's happening.
Thursday, January 14, 2010
A Killer
I can see I'm getting tested this first month of doing this. Last night the trade did everything perfectly - went short and it went slowly, steadily downward, right to the target price and hit it, but only on the sell side. It was the amount of the margin away from completing. Then it reversed and sent up and BARELY hit the break-even stop. I mean the sell didn't even make it. Then it promptly went down and through what was the target price. This is the kind of stuff that will absolutely make you go crazy.
It wasn't a losing trade, but it couldn't have been any closer to a winning one. Twice! Very discouraging. I have yet to have a winning trade this month. The last one was on Dec. 31. I will keep my word and keep doing the plan, though. I still enjoy watching the movement. I guess I'll be out for a week when I'm in Memphis. I'll start again when I get back.
It wasn't a losing trade, but it couldn't have been any closer to a winning one. Twice! Very discouraging. I have yet to have a winning trade this month. The last one was on Dec. 31. I will keep my word and keep doing the plan, though. I still enjoy watching the movement. I guess I'll be out for a week when I'm in Memphis. I'll start again when I get back.
Wednesday, January 13, 2010
Plan B
Another loser yesterday followed by a break-even last night. I'm getting a bit discouraged with this system. I bought an advisor-type program that is supposed to tell you when to put in a trade. I actually like having the certain-time-of-day type plan, but feel I need a back-up plan. I never did hear back from the guys at Forex Cash Factory, so I put in for a refund. It's kind of dishonest, because I plan to continue trading on that plan until I know it absolutely doesn't work, but I don't believe I should show the full amount of appreciation for it if they don't support their product, and I can't get a partial refund.
I was figuring that this new program would be much more than it turned out to be. Of course, they wanted me to buy a couple of other additions to it once I went in there and bought it. Turns out it was the same price as the Cash Factory program, so that's why I went ahead and did it (but not the additions.) No signals so far, though, and I've had it running for a day, which has me concerned as to whether it puts out enough signals. The neat thing is it has a deal on it that emails me whenever there's a signal. I put the email address that is for my cell phone text message in there, so I figure even if it's in the middle of the night, it will wake me up (hopefully.)
I was figuring that this new program would be much more than it turned out to be. Of course, they wanted me to buy a couple of other additions to it once I went in there and bought it. Turns out it was the same price as the Cash Factory program, so that's why I went ahead and did it (but not the additions.) No signals so far, though, and I've had it running for a day, which has me concerned as to whether it puts out enough signals. The neat thing is it has a deal on it that emails me whenever there's a signal. I put the email address that is for my cell phone text message in there, so I figure even if it's in the middle of the night, it will wake me up (hopefully.)
Monday, January 11, 2010
Feeling the Pressure - Already
I'm in the middle of a rough stretch here. Three down days in a row. One straight loser, another one that lulled me into falling asleep, and my account suffered TWO losers from that, and last night another straight loser. Needless to say, I am no longer up, even in my test account that shows what it would do if I were actually present to make the trade correctly. This is why you have to start with a certain amount of money - so you have a cushion. Especially when you are starting out. That is also why paper trading is essential.
I am also apparently choosing to feel more stressed about this situation, and I am handling that in ways I have been studying lately. The stress isn't necessarily a bad thing, though. It helps me to be on the lookout for additional trading plans to put into place in case this one doesn't workout. That, or features to add to this one that would make it work more often, such as I know one gentleman, Bill Polous, has a similar plan but goes off certain patterns in the chart. He also uses a volatility index to tell him how far away his stops should be. I like that feature. I like just trading using a particular time of day, because that generally keeps you from trading all the time, which I don't want to do.
One thing I know I am NOT going to do is pay a bunch for a complicated trading plan. Or a simple trading plan. The main thing I do like about the Forex Cash Factory is it's simplicity. The other thing I like is it's pretty reasonable price-wise. What I am truly looking for is the perfect combination of simplicity and consistency of effectiveness. I believe the consistency factor correlates with the simplicity factor, or lack there of. I would be willing to play with the system I am using, though, and see if I can add certain features that would lower it's simplicity at a minimum amount while elevating the amount of consistency at the maximum. This would be fun for me, and if I can achieve such a thing, I'm sure there are many people out there that would love to know about it!
All right - there is the thing that is outside trading that I could be looking for. Inventing a new trading system that is simple, reasonable, but but more consistent than just random or slightly above it. Well, it's not exactly outside trading, but it's intellectual material that I know people would love to find.
I am also apparently choosing to feel more stressed about this situation, and I am handling that in ways I have been studying lately. The stress isn't necessarily a bad thing, though. It helps me to be on the lookout for additional trading plans to put into place in case this one doesn't workout. That, or features to add to this one that would make it work more often, such as I know one gentleman, Bill Polous, has a similar plan but goes off certain patterns in the chart. He also uses a volatility index to tell him how far away his stops should be. I like that feature. I like just trading using a particular time of day, because that generally keeps you from trading all the time, which I don't want to do.
One thing I know I am NOT going to do is pay a bunch for a complicated trading plan. Or a simple trading plan. The main thing I do like about the Forex Cash Factory is it's simplicity. The other thing I like is it's pretty reasonable price-wise. What I am truly looking for is the perfect combination of simplicity and consistency of effectiveness. I believe the consistency factor correlates with the simplicity factor, or lack there of. I would be willing to play with the system I am using, though, and see if I can add certain features that would lower it's simplicity at a minimum amount while elevating the amount of consistency at the maximum. This would be fun for me, and if I can achieve such a thing, I'm sure there are many people out there that would love to know about it!
All right - there is the thing that is outside trading that I could be looking for. Inventing a new trading system that is simple, reasonable, but but more consistent than just random or slightly above it. Well, it's not exactly outside trading, but it's intellectual material that I know people would love to find.
Friday, January 8, 2010
Lessons Learned
I learned a lesson last night that I feel will be very valuable to me as I go through the process of becoming a successful trader. The set up was fairly wide, and the price was in the middle, so I decided to set up trades on both sides. I went and laid down for a while, and when I got up the market had switched to the short side. It wasn't all that far away from doing the trade, but kept going back and forth. I was tired so I decided to go to bed and get up in like an hour to check it. Well, 7:00 rolled around before I woke up. I went to check it and found the market had gone through my trade and reversed around 18 or so pips down. If I had been awake, I could have moved the stop down for a break-even trade. It reversed and went up and took out my stop for a 15 pip loss. Then it did something even worse. Within a minute, it went up, took out my long trade and reversed for another 15-pip loss.
Now all this happened starting around 5:00 or 5:30. and was done at 6:35. If I am going to do this, I need to start snoozing within earshot of the computer so I at least hear when my trade happens. When I am trading real, my platform has an alert that can sound an alarm or send an email or text message to me. That way I can even know when my trade goes to the 15-pip point to move the stop.
At least it's just a practice account - not real money. This is why it's a good idea to paper trade before you actually go to the real stuff. This has been my downfall in the past. I got the idea that a trading system absolutely worked, but didn't paper trade it, at least not as much as I needed to. The other thing is that I found out that even when I do bone-head moves like this, I'm only down 30 pips. At the minimum, that's $30. That's why I always to 15 pip stops and why I need at least $400to trade. Ideally, it would be $500, but if this is working in practice trading I don't think I'll have that much patience. That gives me 26 losers in a row before I'm broke. I'll guarantee I'd be going back to paper trading long before I got through that 26 losses. What I'm finding is most of these, or at least half of them, end up break-even, where I still make a buck. Last night's would have.
The other plus about this is I recognize that I no longer am making fear-based mistakes, and I don't think I will be when I determine this system works and I start trading using real money. At least they're not fear-based relating directly to the trades themselves. The only fear involved last night was thinking I might lose too much sleep, or that my wife will think I'm an idiot for staying up all night staring at those stupid charts.
For now, though, I am just going to have to stay near the computer so this sort of thing is much less likely to happen. I was thinking that I shouldn't put on both-side trades, but that would be ok as long as I don't go to bed on the other side of the house. And be willing to take the far-away one off if the price gets close to my entry, instead of waiting until it actually trips.
There! Lesson learned. Now to record this debacle, I put it as it happened in my trade log, and put it as it should have happened in my practice-goal spreadsheet. The whole thinking behind the second one is to see if this method actually works. I'm pretty sure it does, but it seems prudent to keep a running record of how these trades should go. That is, when I am responsible enough to manage them properly. It's also prudent, though to show how fallible I am and put safety precautions in for that. Granted, it is tough to stay up, but I can at least snooze, as long as I can hear the computer. Now I just have to hope that the program doesn't shut down, as it often does. With last night's activity in mind (the thing swung like 60 pips in a MINUTE! -after hardly moving for 3-4 hours) I am going to minimize the times I put on a dual-direction trade. And if it is close at all, I need to at least look at it every 15-30 minutes, depending how close the price is to my entry point.
Now all this happened starting around 5:00 or 5:30. and was done at 6:35. If I am going to do this, I need to start snoozing within earshot of the computer so I at least hear when my trade happens. When I am trading real, my platform has an alert that can sound an alarm or send an email or text message to me. That way I can even know when my trade goes to the 15-pip point to move the stop.
At least it's just a practice account - not real money. This is why it's a good idea to paper trade before you actually go to the real stuff. This has been my downfall in the past. I got the idea that a trading system absolutely worked, but didn't paper trade it, at least not as much as I needed to. The other thing is that I found out that even when I do bone-head moves like this, I'm only down 30 pips. At the minimum, that's $30. That's why I always to 15 pip stops and why I need at least $400to trade. Ideally, it would be $500, but if this is working in practice trading I don't think I'll have that much patience. That gives me 26 losers in a row before I'm broke. I'll guarantee I'd be going back to paper trading long before I got through that 26 losses. What I'm finding is most of these, or at least half of them, end up break-even, where I still make a buck. Last night's would have.
The other plus about this is I recognize that I no longer am making fear-based mistakes, and I don't think I will be when I determine this system works and I start trading using real money. At least they're not fear-based relating directly to the trades themselves. The only fear involved last night was thinking I might lose too much sleep, or that my wife will think I'm an idiot for staying up all night staring at those stupid charts.
For now, though, I am just going to have to stay near the computer so this sort of thing is much less likely to happen. I was thinking that I shouldn't put on both-side trades, but that would be ok as long as I don't go to bed on the other side of the house. And be willing to take the far-away one off if the price gets close to my entry, instead of waiting until it actually trips.
There! Lesson learned. Now to record this debacle, I put it as it happened in my trade log, and put it as it should have happened in my practice-goal spreadsheet. The whole thinking behind the second one is to see if this method actually works. I'm pretty sure it does, but it seems prudent to keep a running record of how these trades should go. That is, when I am responsible enough to manage them properly. It's also prudent, though to show how fallible I am and put safety precautions in for that. Granted, it is tough to stay up, but I can at least snooze, as long as I can hear the computer. Now I just have to hope that the program doesn't shut down, as it often does. With last night's activity in mind (the thing swung like 60 pips in a MINUTE! -after hardly moving for 3-4 hours) I am going to minimize the times I put on a dual-direction trade. And if it is close at all, I need to at least look at it every 15-30 minutes, depending how close the price is to my entry point.
Thursday, January 7, 2010
A Loser
I'm committed to report on the bad as well as the good. Not that a losing trade should be called 'bad' (is there really any true 'bad?') It's just that last night didn't exactly take me in the direction I'm trying to go. There will be a loser once in a while, and there will be streaks of losing trades (this could be the beginning of one.) Like I said, there must be joy in doing the mechanics of it without being attached to any result.
Anyway, there wasn't really any miscues, other than still not knowing if I should be looking at shorter time frames and using that to determine my entry points. I sent another email to the author of this trading plan. He never answered my last one. I'm still just using the parameters on the hour chart. I will maintain that consistency will, over time, prevail as the important factor for success.
The trade went as follows: It grabbed the entry price but didn't go much more than 3 pips higher before coming down close to and then back down to the stop loss. It only took about 15 minutes. I looked at it this morning and it eventually went all the way through the setup block and down over the 45 pips. It didn't go straight down, though. I don't think a short trade would have worked either, but it might have worked it's way into a break-even at least.
So, I'm still up after only two winners out of 15 trades. Not too bad. That is, if I had used the same numbers from the beginning. Granted, it's the dollar per trade I'm working into the break-evens that has me up, so I am actually dead even if you don't count that. My practice account is down $16 but remember I had to throw 2 losers and a winner out to reset to the proper dollar amounts, so it would be like my real account will be when I start trading real money. I am figuring that this system is going to work out. I figure a month's worth of trades is about 22, so I've only got 7 trades to make it up to my goal, which is 100 pips. I plan to do this another month before I go live. I hope to see a months worth of trades in there that is at least close to that goal.
I have to work tonight - I hope I don't miss the trade. Oh, well - at this point the $100 I make working is much more important that a practice trade. I'll at least monitor what happens and try to see how it would have been if I don't make a trade. Who knows? Maybe it will hang out and wait until after I get home. I shouldn't be too late.
Anyway, there wasn't really any miscues, other than still not knowing if I should be looking at shorter time frames and using that to determine my entry points. I sent another email to the author of this trading plan. He never answered my last one. I'm still just using the parameters on the hour chart. I will maintain that consistency will, over time, prevail as the important factor for success.
The trade went as follows: It grabbed the entry price but didn't go much more than 3 pips higher before coming down close to and then back down to the stop loss. It only took about 15 minutes. I looked at it this morning and it eventually went all the way through the setup block and down over the 45 pips. It didn't go straight down, though. I don't think a short trade would have worked either, but it might have worked it's way into a break-even at least.
So, I'm still up after only two winners out of 15 trades. Not too bad. That is, if I had used the same numbers from the beginning. Granted, it's the dollar per trade I'm working into the break-evens that has me up, so I am actually dead even if you don't count that. My practice account is down $16 but remember I had to throw 2 losers and a winner out to reset to the proper dollar amounts, so it would be like my real account will be when I start trading real money. I am figuring that this system is going to work out. I figure a month's worth of trades is about 22, so I've only got 7 trades to make it up to my goal, which is 100 pips. I plan to do this another month before I go live. I hope to see a months worth of trades in there that is at least close to that goal.
I have to work tonight - I hope I don't miss the trade. Oh, well - at this point the $100 I make working is much more important that a practice trade. I'll at least monitor what happens and try to see how it would have been if I don't make a trade. Who knows? Maybe it will hang out and wait until after I get home. I shouldn't be too late.
Wednesday, January 6, 2010
Stay with the Plan!
Last night's trade, although it wasn't a winner, was fairly easy. The setup was wide again - not as wide as the other day on the 31st, but close. The price was around the middle of it, so I once again set up trades on both sides and went to bed.
Now, I'm not so sure I would feel that great about doing it this way if I had real money at stake. Especially not at first. I know those first few trades in my real account will be a bit punishing, because I will be staying up at least until the second part of the trade is done (where I move my stop up to break even.) Last night that would have been around 3:00. Funny thing, though. I woke up right around that time and went out to check it and sure enough! It had gone up to the long entry and on up to the point where I could move my stop up.
Unfortunately, it didn't continue - in fact it came down almost immediately and came close to stopping out before it went back up and made another attempt - but it finally pooped out - and stopped out.
When I got up this morning, I discovered that it eventually went on down just below what would have been my 'losing trade' stop before taking off and going way up. It eventually went up to the winning point, but would have stopped out first. That's why it's good to check these things, even if it's only every couple hours.
The thing is, I've got to be good with sticking with my plan and not caring that it eventually went up to the goal. Going away from the set plan is the way most people fail at this. There will be a time when it goes straight to the target, or at least stays within the parameters of the plan before going up (or down, depending on the direction needed.) I'm feeling myself becoming more comfortable with that mindset. I know that it will become more of a test as time goes on. I have a tendency to veer - and hence the title of this blog.
I'm sure there's nobody out there that does this, huh?
I still haven't done anything with regards to the 'money right now' issue. I seem to be getting better at The Law of Attraction, though. Every weekend, I get someone calling out of the blue that need my services. I love it!
Now, I'm not so sure I would feel that great about doing it this way if I had real money at stake. Especially not at first. I know those first few trades in my real account will be a bit punishing, because I will be staying up at least until the second part of the trade is done (where I move my stop up to break even.) Last night that would have been around 3:00. Funny thing, though. I woke up right around that time and went out to check it and sure enough! It had gone up to the long entry and on up to the point where I could move my stop up.
Unfortunately, it didn't continue - in fact it came down almost immediately and came close to stopping out before it went back up and made another attempt - but it finally pooped out - and stopped out.
When I got up this morning, I discovered that it eventually went on down just below what would have been my 'losing trade' stop before taking off and going way up. It eventually went up to the winning point, but would have stopped out first. That's why it's good to check these things, even if it's only every couple hours.
The thing is, I've got to be good with sticking with my plan and not caring that it eventually went up to the goal. Going away from the set plan is the way most people fail at this. There will be a time when it goes straight to the target, or at least stays within the parameters of the plan before going up (or down, depending on the direction needed.) I'm feeling myself becoming more comfortable with that mindset. I know that it will become more of a test as time goes on. I have a tendency to veer - and hence the title of this blog.
I'm sure there's nobody out there that does this, huh?
I still haven't done anything with regards to the 'money right now' issue. I seem to be getting better at The Law of Attraction, though. Every weekend, I get someone calling out of the blue that need my services. I love it!
Tuesday, January 5, 2010
Keep Focused (yeah, right)
I veered a little last night, and it almost cost me a winning trade. I started wondering if the 10 minute chart would be better to use than the 1 hour chart as the guy with the trading plan suggested. Instead of setting up the trade ahead of time and launching it right at 1:00, I watched as the market dropped and I had to click a market order to get in, and it ended up getting me in about 7 or 8 points below where my plan would have been. Looking back at the charts, it might have been a tad short of completing the trade anyway, and I did manage to move my stop down for a break even trade. Not only that, I was able to go to bed fairly quickly (also a plus!)
So, no harm, no foul. And, I got a lesson out of it as well. I need to focus and make sure I get my trade set up at that 1:00 time and not think about anything else. The 1 hour charts are fine, and don't worry about the inconsistency between them and the shorter time frame charts. All I know is, the more I stay with the basic procedure, the better this will go.
Okay - now for the longer-term thoughts on things. I really didn't mean for this to be purely a forex trading blog. I want to report how I get my family out of the rat race, so we can enjoy our lives without worrying about being able to afford stuff.
I have been reading a lot of books about changing your point of view about things, such as money, business, and just the general way things are. I know that sounds pretty out there, but hang on a little bit, and I'll explain.
So, you can see that I have a passion about trading. I can't explain why. I can feel the energy swell inside me when I think about that as opposed to real estate or MLM, where I can feel the energy sink. There are little procedures that you follow day to day in all of these things, and how you feel about doing those little procedures makes all the difference.
I am familiar with the procedures required for MLM and real estate investing, but don't feel the same passion for doing those that I do for trading. My biggest concern, though, is that I'll run out of time with regards to my creditors before the trading account becomes what it needs to to solve our financial problems. Therefore, I guess what I am saying is, I feel the need to find something besides doing sound and playing in the band and trading to create more income for right now, and have the passion for doing what I need to do in order to have that thing actually work and create that income. So far, I haven't been able to come up with that thing.
I guess what I need to do, is list all the things that I am passionate about. Hmmm...I know I love all kinds of sports - and I mean observing and commenting on them, not necessarily playing them. I have all kinds of opinions about what our teams around the Denver area are doing. I guess I could write about that, and contribute to the newspaper or radio station talk shows.
There is also probably a lot more things I could be doing with regards to music. I just have certain things I like to do, and as I think about other stuff related to it, don't get me too excited. Like, I thought about getting into teaching bass and guitar, and the closer I got to actually doing that, the more it seemed like a bad idea. Not that it wouldn't be fun to help some kids, or adults, for that matter, learn how to play guitar. I just found out how competitive it is, and some of the other side things didn't seem thrilling. I might entertain that thought again, but as I got closer, it didn't seem like there is much return for the amount of work that would most likely go into it.
Well, there's a couple of ideas. I might mess around with the sports thing and do a couple of things relating to that, like write some articles, just to get my thoughts in order, maybe call a station or two and put my .02 in.
Meanwhile, I'll be more focused on the trading.
Oh yeah - I almost forgot. That thing about changing your point of view. This is getting a little long, so I'll probably go into it in a later entry, but I'll delve into it a little bit here.
I am concentrating on doing what is fun for me, and letting the rest take care of itself. A reference for checking this out further, is Robert Scheinfeld's Busting Loose from the Money Game. I also recently finished Busting Loose from the Business Game, which got a bit more in depth but was generally the same kind of thing. If you read either one, you'll get the idea, and, you'll either be like, "Give me a break," because it is so far away from the way you have always thought, or it might be a breakthrough. I know it has been for me. Now I am working to incorporate it into who I am.
Now that I think about it, this is kind of an ironic entry in that I de focused this blog a little - with regards to the subject matter. Oh well - I probably got a little more on track as far as my original idea about it.
So, no harm, no foul. And, I got a lesson out of it as well. I need to focus and make sure I get my trade set up at that 1:00 time and not think about anything else. The 1 hour charts are fine, and don't worry about the inconsistency between them and the shorter time frame charts. All I know is, the more I stay with the basic procedure, the better this will go.
Okay - now for the longer-term thoughts on things. I really didn't mean for this to be purely a forex trading blog. I want to report how I get my family out of the rat race, so we can enjoy our lives without worrying about being able to afford stuff.
I have been reading a lot of books about changing your point of view about things, such as money, business, and just the general way things are. I know that sounds pretty out there, but hang on a little bit, and I'll explain.
So, you can see that I have a passion about trading. I can't explain why. I can feel the energy swell inside me when I think about that as opposed to real estate or MLM, where I can feel the energy sink. There are little procedures that you follow day to day in all of these things, and how you feel about doing those little procedures makes all the difference.
I am familiar with the procedures required for MLM and real estate investing, but don't feel the same passion for doing those that I do for trading. My biggest concern, though, is that I'll run out of time with regards to my creditors before the trading account becomes what it needs to to solve our financial problems. Therefore, I guess what I am saying is, I feel the need to find something besides doing sound and playing in the band and trading to create more income for right now, and have the passion for doing what I need to do in order to have that thing actually work and create that income. So far, I haven't been able to come up with that thing.
I guess what I need to do, is list all the things that I am passionate about. Hmmm...I know I love all kinds of sports - and I mean observing and commenting on them, not necessarily playing them. I have all kinds of opinions about what our teams around the Denver area are doing. I guess I could write about that, and contribute to the newspaper or radio station talk shows.
There is also probably a lot more things I could be doing with regards to music. I just have certain things I like to do, and as I think about other stuff related to it, don't get me too excited. Like, I thought about getting into teaching bass and guitar, and the closer I got to actually doing that, the more it seemed like a bad idea. Not that it wouldn't be fun to help some kids, or adults, for that matter, learn how to play guitar. I just found out how competitive it is, and some of the other side things didn't seem thrilling. I might entertain that thought again, but as I got closer, it didn't seem like there is much return for the amount of work that would most likely go into it.
Well, there's a couple of ideas. I might mess around with the sports thing and do a couple of things relating to that, like write some articles, just to get my thoughts in order, maybe call a station or two and put my .02 in.
Meanwhile, I'll be more focused on the trading.
Oh yeah - I almost forgot. That thing about changing your point of view. This is getting a little long, so I'll probably go into it in a later entry, but I'll delve into it a little bit here.
I am concentrating on doing what is fun for me, and letting the rest take care of itself. A reference for checking this out further, is Robert Scheinfeld's Busting Loose from the Money Game. I also recently finished Busting Loose from the Business Game, which got a bit more in depth but was generally the same kind of thing. If you read either one, you'll get the idea, and, you'll either be like, "Give me a break," because it is so far away from the way you have always thought, or it might be a breakthrough. I know it has been for me. Now I am working to incorporate it into who I am.
Now that I think about it, this is kind of an ironic entry in that I de focused this blog a little - with regards to the subject matter. Oh well - I probably got a little more on track as far as my original idea about it.
Monday, January 4, 2010
Brain Teasers
Last night's trade went as though someone new exactly what my parameters were. It gave me an entry point, hit it and went up exactly 15 points. Then it retreated - luckily I was able to move my stop loss up to the break-even point. It promptly hit that. When I got up this morning, I looked and noticed that it ended up retreating just to the point where I would have been stopped out for a loss, then rocketed way up beyond what would have been a winning trade.
This kind of scenario could drive a person crazy if it happened very often. The things that go through your mind are stuff like, "Why does this always happen to me?" and other negative things, relating to how the trade went. I am actually thankful that I found this trading method, because it takes all the emotion out of it. I avoided a losing trade. There will be winners later that won't do this pattern. There will also be times where it won't quite get to the point where I can move the stop loss up, and it will get stopped out for a loss. It's just part of the deal.
I have a belief that this is the kind of scenario that keeps many traders from being successful in the long run. Even if they have a system, they don't follow it exactly, or get frustrated when the market seems to know the action points. And the ones that don't have a system - well, I don't see how those folks last very long at all. They get knocked out financially and need mental therapy to boot.
You have to always think of these kind of things as a test of your fortitude to stick exactly with your plan, without any expectation of a particular outcome. I know it's hard to do, because you are always talking to yourself, if only silently. You say, "Why would I be doing this if I don't have an expected outcome?" I believe you almost have to have a joy in doing the process...a joy in observing what happens in the market when you put a trade on, without needing to have it go a certain way. Your system should, in the long run, give you the result you are looking for - and if it doesn't after a predetermined amount of time, it's time to look for a different system.
This kind of scenario could drive a person crazy if it happened very often. The things that go through your mind are stuff like, "Why does this always happen to me?" and other negative things, relating to how the trade went. I am actually thankful that I found this trading method, because it takes all the emotion out of it. I avoided a losing trade. There will be winners later that won't do this pattern. There will also be times where it won't quite get to the point where I can move the stop loss up, and it will get stopped out for a loss. It's just part of the deal.
I have a belief that this is the kind of scenario that keeps many traders from being successful in the long run. Even if they have a system, they don't follow it exactly, or get frustrated when the market seems to know the action points. And the ones that don't have a system - well, I don't see how those folks last very long at all. They get knocked out financially and need mental therapy to boot.
You have to always think of these kind of things as a test of your fortitude to stick exactly with your plan, without any expectation of a particular outcome. I know it's hard to do, because you are always talking to yourself, if only silently. You say, "Why would I be doing this if I don't have an expected outcome?" I believe you almost have to have a joy in doing the process...a joy in observing what happens in the market when you put a trade on, without needing to have it go a certain way. Your system should, in the long run, give you the result you are looking for - and if it doesn't after a predetermined amount of time, it's time to look for a different system.
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