A Review Of My Service By One Of My Subs and His Journey In The Market
My journey: I started trading forex, then I went to penny stocks with Tim and finally I met Triforcetrader. He was key to my learning curve, as he is very clear on what works and what doesn’t. I have a long way to go, but just want to make the point on how important it is to follow someone that proves what he says with real data, as there is so much false or non-proven information about trading out there.
So this has been my journey, below is my profit chart:
1: Joined Triforce trader but kept trading penny stocks.
2: Stopped trading penny stocks
3: Started applying what I learned from Triforcetrader basing my trades on my systems only, stopped doing everything else and traded with the minimum, micro lots then sometimes went with mini lots.
4: Stopped using mini contracts and started trading only with normal contracts.
I post all my trades on profitly and I also post in real-time in Triforce chatroom and sometimes on my twitter.
Increasing size has been difficult for me, every time I do it I have a big losses, so I downsize and I make a nice trade so I increase my size again and I loose…
From everything above, the most important one is number 3. I didn’t put this number to match the inflection point, you can see my trades and comments at that moment. At this point I’ve gain much valuable information with Triforce and started to approach the markets in a very different way. And looking back, thank god I did.
I’m not a programmer, but I was able to code some strategies to backtest what I was manually doing. If you have not programed before, it is not rocket science. It is so easy that the language name is Easy Language, no kidding.
Another important key lesson that I learned was that trading is about what you do, but also what you don’t do. So I created my own rules and I try to respect them religiously. As you can see on the profit chart, all of this was key to my success.
So I kept doing only what works, in my case I noted that I had a nice edge trading currencies, so I kept doing that, and from that point on my trading has turned around. I was consistently making small money, after proving myself that my edge was real I went with bigger contracts.
I’ve failed many times executing my strategy, I’ve taken profits like an idiot and have taken stupid losses, but overall I was down 3k and now I’m up 2k and I’ve been making money almost every week.
Finally even though I’m still in the learning phase, I can say with confidence that every day the market will give me a chance to make a few hundreds dollars to 1k+ a contract.
As most people in profitly are penny stock traders, I think I should mention the differences I’ve found between penny stocks and futures:
1: It is a 23 hours market and that is very helpful if you have another job or whatever.
2: Futures has all the liquidity you could ask for to go long and short. Can you imagine that on a penny stock? This is a major point, as the big edge on penny stocks is on the short side, but is not easy and many times impossible to find shares to short. And also no borrowing fee, I think futures couldn’t be any better.
3: If you like to trade news, in futures you are following world events that you will remember forever, I mean Brexit, OPEC output cut, presidents elections, central banks events, referendums, stuff like that. I found it more interesting than what you can find on penny stocks companies. You are following what is going on over the world, not a shady company that no one knows.
4: In futures big gaps are rare, as market close only 1 hour and it is very unlikely to have a big gap like a stock. However sometimes gaps can happen over the weekend.
5: Since futures are very liquid, price slippages are nothing compared to stocks. I mean, I’ve suffered from slippages but we are talking of 2 or 3 tick (or $12 to $18 per contract) but on penny stocks I can remember trades where I wasn’t able to get out at my price and to ended up loosing so much more of what I planned, even with a hard stop.
The similarity between penny stocks and futures is that you can trade with a small account, I would personally not recommended it for anyone with an account of less than 10k if you have no experience. BUT, you can trade with micro contracts and mini contracts… So I think you could try it with 5k but you don’t mess with the big contracts.
The progression of contracts from big to small for the S&P 500, would be @SP(Big Boy Contract), @ES(E-mini Contract). If mini contract in @ES is to spicy still you could always trade the @YM (which is the five dollar Dow) as the Dow and S&P track each other.
Another way is using ETFs. I heard incorrect statements in penny stock land like: there is no edge on trading ETF. But that’s not true, in fact in Tri chatroom there is a guy who I’ve seen him many times making 5 figures in 1 day trading them(@TheBioHunter)… I also traded them and posted all those trades on profitly. The only reason I’m not trading them now is because I want to stay focused on 1 thing.
With all of this I just wanted to share my journey so far and make the point that if you are looking to become a trader who consistently make money trading, there are lot of things to look for and in my honest opinion penny stocks has nothing particular that makes them the best option.