Archive for the ‘Financial’ Category
Forex trading update
I’ve been following the SuperWoodie CCI indicator for my forex trades, frequently entering during the early Asian session. So far this has shown to be profitable, with yesterday being the best so far (70 pips). I find that I tend to exit early when watching the 5 min chart for pullbacks. Right now that seems to be the only thing I need to work on with this strategy.
Options @ Collective2
I have opened a virtual account with Collective2 so that my options trades are automatically tracked by a 3rd party. The public can view closed trades but I will almost always have open trades that you don’t see. So far in the first two days the account is up 15% thanks to APPL (position nearly doubled) and LPL (still open, position up over 50%).
There is a 14 day trial period available for those who want to track my live trades as they happen. Assuming my results continue to be very good I will be going live in about a month. I’m using my main strategy of trading news, earnings, etc and looking for companies with strong fundamentals that have a high probability of rapid growth.
No Snakeoil Here
A few people have requested that I discuss investing so that’s what I’ll do here, starting with more specific long term goals.
Goal #7: 5 Year Financial Goal. In five years the vast majority of my income comes from a combination of rental properties, forex, and stocks/options investments.
Here’s a breakdown of each:
Forex Trading Update
Earlier this week I had a bit of a blow out on the Oanda account. I lost $6500 (6.5%) in one day and then another $1500 (1.5%) the next. I also lost about 5% more on the NF account. I realized that the one thing missing from my Oanda BoxOptions strategy was real research and mathematical pricing. While I understand how the system works I wasn’t looking at the underlying math used to calculate the price and how to calculate if I was taking a low risk trade.
Finally going live on Forex!
I received cash from most of my relatives as Christmas gifts. I decided to use all of the money, plus some of my own, to open a real Forex trading account. I will be starting with a whopping $200. If the account is up after a month of trading I’ll start adding more on a regular basis.
Million Dollar Experiment Psychology
I’ve been observing Steve Pavlina’s Million Dollar Experiment since inception. It’s an interesting concept, however it has quite a few flaws that I’d like to point out.
The idea that you can create money out of thin air is an enticing concept. The promise of something for nothing always draws interest. The act of setting the goal to obtain $1 million alone can increase your income. (1) You may begin to see opportunities that existed all along. However, once you believe that money will start coming into your life due to outside influences you start to apply confirmation bias. Confirmation bias is the concept that you will have “the tendency to search for or interpret information in a way that confirms one’s preconceptions.” So once you believe that money will appear you will start seeing sources of income that would have happened anyway as fulfilling that prophacy. Confirmation bias also causes you to downplay anything that disproves the concept.
Show Me The Money!
Goal #6: By the end of February 2006 I have developed a Forex trading methodology that I feel comfortable using and am trading it with a live (real money) account. You can view my current strategies and demo accounts here.
I’ve been learning the Forex markets since September. I’ve looked at every indicator I can find, read hundreds of forum posts and websites, talked with traders, and traded demo accounts. Forex trading will play a large part of my income over 2006.
Throwing your money away?
Do you toss your money away? Probably. Most people waste cash every single day. Do you buy coffee at a cafe? Do you smoke, have your shoes shined, or eat out frequently? Almost everyone has something small they waste money on that could make the difference between being rich or poor.
How could a cup of coffee or a pack of smokes a day make you rich? Let’s assume on average you spend $5 a day that you could save by making coffee at home, bringing a lunch, quitting smoking, etc. If you put your $5 a day into an investment that provides a dismal (dismal in my eyes) 10% yearly yeild, in 41 years you will have over $1 million!!
Self-made millionare here I come!
Goal #4: Between my personal net worth and the value of any companies I totally control I have a total worth of at least $1 million by the age of 30.
This goal is self-explanatory, despite being quite a challenge. I’m giving myself 6 years to earn $1 million. That’s an average growth of $166,667 per year! How is this possible? Well, I’ll address the breakdown of this goal into smaller goals in the future, as well as long term financial goals. I strongly believe this to be possible.
Forbes 400 Richest Americans
I picked up a copy of the 2005 Forbes 400 Richest People In America today. It’s been out for quite some time but that doesn’t matter. The whole point is inspiration. If these 400 people can become billionares and millionares why not me? What have they done that I haven’t?
Looking at successful people and copying them can work for you too!