As you may have seen from the link above I am going to be launching a public trading account in a few months to demonstrate how to trade price action successfully.
I have called it the “daily chart challenge” simply because it is a challenge to myself to show you guys that the daily chart is all you need to make money in the forex markets. I also want to demonstrate that you do not need a 250K account to make money, and we will be starting with just £500. I must however make it clear that you will not get rich off this overnight. Too many people get into trouble by trying to make a living from a tiny account by using ridicules position sizes. I have read others say that because you have a small account you will need to take big risks, this is simply not true, and just because you have a small account, it does not mean it is impossible to make money.
For this reason I will probably create a sub-account with Oanda, which is one of my brokers. Oanda will allow us to use ANY position size, this means we can manage risk to an exact percentage. This is so key to making long term profits from the forex market and if you are forced to take to big a position size just because the lot sizes are fixed you will expose yourself large losses.
Now a £500 account is not going to become something that you can live off overnight, even though we do really well with our trading. For this reason there will be a regular payment plan in place that will bump up the balance double quick. My initial thoughts on this will be to pay in £20 for every trade than produces a risk reward of more than 1:1, and as the account grows this amount will be increased slightly.
I Have mentioned in the challenge section that this will be designed to show that someone with a full time job can spend less than 30 minutes a day and make money. You simply look at the charts when they close after the NY trading session and place orders accordingly. Generally we should expect 4-8 trades per month, may not sound much but by focusing on quality price action setups we should have a high success rate as well as a decent risk reward.
What this will not be, is a signal service, the aim with this is to show you the trades as they occur and how to manage them as they unfold. Although its not a signal service I will call the trades live, probably with a blog post and a chart with targets and stop losses.
I do realise that this could go wrong for me and I know that if it did I would basically ruin my reputation on the internet as trader. However I am becoming an increasingly confident and successful trader and I believe that by July or so I should be in a position to show how its done without too many hic-ups.
If anyone has anything they would like to add or ideas please get in touch with me at Comments field below, also if anyone knows a performance tracking website like myfxbook, for Fxtrade accounts at Oanda I would like to know!
Thanks and Good trading.