Time to Go to Work

My success rate in Day Trading is relatively high, but my capital is fairly low for this kind of career. I believe that in order to be successful at Day Trading, or even for general Investing, one should have about $100,000 to start. It`s a lot of money, I know, but the sad fact is that with low capital you would have to leverage your money, and the more you leverage the greater the potential to lose your capital.

 It's true when they say never to wager more than 3% of you total capital. If you wagered more than that your account could go from 'big money' to 'scraping for change' in no time. Because even the best systems out there you still manage to lose some money. I can remember a system I designed that would make me 10 points almost every time entered a trade, but if lost even one trade I would either lose all my winnings and come out with a loss, or I would just breakeven. I found that a lot systems are like that: lots of wins, but bigger losses.

The ideal system would be one where your stoploss's would be smaller than your takeprofits, and the chance of winning is still greater than 50%. I have yet to discover a system such as this (at least one that caters to my personality), but I am always looking.

Sadly, given my capital, I can't carry on doing the Day Trading for a living. The money it takes to pay the bills AND build on my capital is not possible with the capital I got. So, I decided to get back into the Labour Force again. Just recently got excepted at a part time position, so I can still do some Day Trading and possibly some more School.

Unfortunately, the part time position I just got doesn't pay that well, and the amount I'd get comes just short of paying my bills. Hopefully over time my hours and/or pay will increase (from what I know, this will happen in coming months). In the mean time I'd be still looking for a better position.

Now, I've read in many books, articles and forums that having a part time job while Day Trading is a bad idea because your focus is not 100% on trading. There is some true to that statement, but if you trade on weekly, Daily, or even 4 or 1 Hour charts then having a job shouldn't interfere with your trading. For me the majority of trading I do is at 5AM, so if I want a job I can still wake up early for my trading and take off to work at 8or9 when my trading usually ends.Or better yet, work the Day charts and make only one trade a day.

So, to sum up what I'm saying here:
if you do not have some consistency in your income flow when you are Day Trading, then you should consider getting a part time job, or put Day Trading on pause till you can figure out a better system.

Also, I can't stress enough that if you decide to jump into Day Trading on whim, then you are going to fail! Study for months and months with either a demo account or a very, very small live account, and see how you fare. There is nothing worse then putting your hard earned cash into it only to see disappear.

Fractal System on Pause - RSI Divergence and CCI Back In PLay

The Fractal System I had going is going on pause for now, because I'm having too much trouble with my large losses and my small, but many, profits. If I could find a way make my stoplosses smaller and takeprofits larger then I could pull this system off, but for now I'm just going to go back to RSI Divergence and CCI.

There was some bonus to all this work on my Fractal System though. I found/created new indicators, new money management techniques, and other money saving, risk averting methods. I even found a profitable new system based on the 2 Bar High/Low method. I won`t go into detail on that one just yet, but I will post it on the Technical Analysis section at some point.

But for now I`m just focusing on RSI and CCI. So, I`m going to be posting potential trades based on these two and price action for the time being.

TTM Breakout Strategy: Update

Made a couple changes to my TTM strategy, and posted them in the Technical Analysis section. So far it is going pretty good. I'm almost to the point where I'll test the demo account to see if it actually produces a profit, rather than more back-testing.