My 10 year trading plan

[davidh1819]

Hello everyone after many month of paper trading and studying the markets and reading many books I have finally come up with a long term plan for financial freedom so here we go

1. Accept the fact that the markets are unpredictable and anything can happen.

2. Accept the fact that every moment in the market is unique.

3. Accept the fact that losses are an inevitable part of the process and cannot be avoided.

4. Cut losses short Cut losses short and Cut losses short.

5. Develop and edge a systematic approach that puts the odds in your favour.

Now if I complete the above I will do the following

Start a spread betting account with £1000 and manage my finances well and never risk more than 2% of my account in any single trade. My goal is to make 100% of my account each year if I start with £1000 and in a year’s time I have less than £1000 back to the drawing board. However if by the end of the year I have achieved my goal of 100% and have £2000 and proven myself profitable I will invest £8000 from my savings account into my spread betting account so i now have a £10,000 account now this is where it all takes shape. I will still aim to make 100% of my account each year and compound all the profits like shown below

Year 1 = £2000 + £8000 savings
Year 2 = £10,000 at age 21
Year 3 = £20,000
Year 4 = £40,000
Year 5 = £80,000
Year 6 = £160,000
Year 7 = £320,000
Year 8 = £640,000
Year 9 = £1,280,000
Year 10 = Quit my day job at 30 :cheesy:

 

[DionysusToast]

Probably the most realistic plan ever to hit the board.

Good luck.

 

[Hilarymannah]

It depends how long it takes you to master the main crux !

You and your head ,..(trading plans are ten a penny)
My suggestion to you would be,...try your best to loose your money,..and keep repeating until you enjoy it : )

 

[advfntrader]

sounds a good plan, 100% in a year though ? - something to aim for but maybe you won't make that much in reality, as long as you finish year 1 up by 50% then I would say go for it !

 

[GammaJammer]

I think most people struggle by placing too much emphasis on point 4. If you have an edge, it's not about cutting losses short, it's about maximising expectancy (to me at any rate). If you constantly have too tight a rein on your positions you won't often hit the home runs.

A volatility based stop would be a fundamental pillar of any 100% systematic approach I would develop.

Just my $0.02

GJ

 

[davidh1819]

Probably the most realistic plan ever to hit the board.

Good luck.

was that sarcasm? sorry its difficut to tell in text

 

[Hoggums]

compounding numbers on a spread sheet is all well and good - but has nothing to do with reality until you actually have a trading system that can produce these types of figures. I think your plan of 100% a year is an acheivable goal without being too optimistic. We see so many 100% a month or 100% a week numpties on here.

I would put this all aside until you have a trading plan and you've traded it to see what kind of return is actually possible. Then you can dream and draw up your spreadsheet. Most people never get as far as a trading system that works.

Good luck.

 

[shadowninja]

Point 5 is the trickiest bit. Point 4 is only a step behind.

 

[Hilarymannah]

BTW: My comment wasn't a dig,..
If you are scared to loose, you'll never win !
Prepare the foundation first before you attempt to build your house,....or else it "WILL" come tumbling down,....
Remember,... 90% psychology, 10% strategy,...blah blah,..

 

[Hilarymannah]

And again to reiterate, once the concrete has been poured, it's very hard to replace it !

(A habit analogy)

 

[DionysusToast]

was that sarcasm? sorry its difficut to tell in text

Nope - most newer guys want to turn 50 quid into a million in a week.

 

[Paulie_5]

Year 1 = Blood, sweat and tears to develop a trading system that works
Year 2 = Blood, sweat and tears to develop a trading system that works
Year 3 = Blood, sweat and tears to develop a trading system that works
Year 4 = £2000 + £8000 savings
Year 5 = £10,000 at age 24
Year 6 = £20,000
Year 7 = £40,000
Year 8 = £80,000
Year 9 = £160,000
Year 10 = £320,000
Year 11= £640,000
Year 12= £1,280,000
Year 13 = Quit my day job at 33

That's a bit more realistic!

In seriousness your plan is fine - but it will take you a lot longer than you think to develop a workable edge that you have absoulte confidence in.

Best of luck!

 

[shadowninja]

I'm trying to turn £25 into £1m on Betfair. £23.71 so far.

 

[shadowninja]

Year 1 = Blood, sweat and tears to develop a trading system that works
Year 2 = Blood, sweat and tears to develop a trading system that works
Year 3 = Blood, sweat and tears to develop a trading system that works

Yep. Possibly.

 

[oildaytrader]

Year 1 = Blood, sweat and tears to develop a trading system that works


Best of luck!

With thousands of free working trading systems on the internet, how come none of them are profitable?

 

[shadowninja]

Because they don't have the ShadowNinja Lucky Ninja Death Sword with magical lucky Forex Runes, obviously.

 

[oildaytrader]

Because they don't have the ShadowNinja Lucky Ninja Death Sword with magical lucky Forex Runes, obviously.

How much for it?

 

[Hotch]

Three questions.

1-How many trades does david expect to put on a day.
2-Based on the above, do people think that his requires good trading.
3-Based on the above, what do people think are good win% and reward ratios.

Hotch

xxx

 

[DionysusToast]

I'm trying to turn £25 into £1m on Betfair. £23.71 so far.

At least you aren't trying to trade the e-mini with that.

Mind you - if you did, you could start a "2 ticks to trillions" journal that would entertain us for a short period.

 

[shadowninja]

How much for it?

See my profile. Unfortunately, I'm out of stock. If you look hard on ebay, you can see them changing hands for as little as £43,000 a piece for one that comes without a box or registration papers.