Starting next week I will begin a public challenge. I am freshly depositing $10,000 into a futures trading account. During the course of six months, I will look to turn that balance into $100,000. Every single trade will be posted on WinningPortfolio.com and on the private twitter. Trades will also be posted on WickedFire but with a slight delay. I will also likely do a daily video update on where the entries & exits were, and also explain why I initiated that trade in the first place.
Purpose of this challenge? I am beginning with an account balance that most people entering the markets can relate with. Most of all, by having a separate account that will have every single trade documented, there would be full transparency and it would also come to light as to whether or not it is feasible to have a consistent edge in the market.
What trading strategies will I be employing? Strictly technical trading. Locating support and resistance levels and deciding my entries and exits based on that. I will not be utilizing fundamentals and at the very most, I would use RSI as an indicator.
Why only futures, how about options or common share? Simple answer, day trading restrictions. When an account has a balance below $25,000; you are only able to have three same day trades within a 5 business day period. This restrictions apply to option trading or trading common shares. Since I tend to open and close positions in the same day quite often, I do not want to be concerned with that restriction. Trading futures also opens me up to trading commodities that have less news to trade on, etc Corn. Lastly, for a new trader, it is much simpler to trade the futures market as opposed to options that derive their value from several different factors.
Will I set weekly profit figures? I will not since that is too difficult to anticipate. On a good week, if I hit that figure early on, that is no excuse to not continue trading the rest of the week. At some point there will be enough data to figure out what my daily profit sits at which I could possibly use as an ongoing benchmark.
Do I believe I will be success? Yes. It will be a difficult challenge to increase your account ten fold in half a year while trying to minimize the chances of risk to ruin, but I do believe I have the tools and mindset to make it happen.
Purpose of this challenge? I am beginning with an account balance that most people entering the markets can relate with. Most of all, by having a separate account that will have every single trade documented, there would be full transparency and it would also come to light as to whether or not it is feasible to have a consistent edge in the market.
What trading strategies will I be employing? Strictly technical trading. Locating support and resistance levels and deciding my entries and exits based on that. I will not be utilizing fundamentals and at the very most, I would use RSI as an indicator.
Why only futures, how about options or common share? Simple answer, day trading restrictions. When an account has a balance below $25,000; you are only able to have three same day trades within a 5 business day period. This restrictions apply to option trading or trading common shares. Since I tend to open and close positions in the same day quite often, I do not want to be concerned with that restriction. Trading futures also opens me up to trading commodities that have less news to trade on, etc Corn. Lastly, for a new trader, it is much simpler to trade the futures market as opposed to options that derive their value from several different factors.
Will I set weekly profit figures? I will not since that is too difficult to anticipate. On a good week, if I hit that figure early on, that is no excuse to not continue trading the rest of the week. At some point there will be enough data to figure out what my daily profit sits at which I could possibly use as an ongoing benchmark.
Do I believe I will be success? Yes. It will be a difficult challenge to increase your account ten fold in half a year while trying to minimize the chances of risk to ruin, but I do believe I have the tools and mindset to make it happen.
