Sunday, February 22, 2009

Trading from the wrong side

One of the key elements to become a successful trader surely is being alert when you trade, be able to make clear and concise decisions in quick time.
So why do I leave the safe haven of a familiar market that I normally trade in Australia and change to trading a market that operates in the middle of my nighttime, is fiercely complex and rips trading accounts to shreds faster than a wild animal does to its prey ?

The answer to that is quite complex and yet so simple. After 8 years of honing skills on the local market I have come to the conclusion that the market here in Australia is to small. Not in the way you may think, It's not that I feel I have outgrown it, more so that I finally can see the amount of manipulation present in the market.
The amount this influences outcomes for the retail trader can be quite severe, most of all for anyone who trades on Technical Analysis, the bigger players can easily create what appears to be an ideal set-up on relatively low volumes, then catch the majority of unsuspecting retail traders as they reverse direction and take everyone to the cleaners.
I dont mean to suggest there are no big players moving markets anywhere but in Australia, what I say is it becomes much more difficult to create their desired outcome when attempted in a much larger markets. This is but one of my reasons for moving to Futures.
Here we go, off on this new adventure.

I have spent the last couple of months trading the S&P each night in simulation, checking what indicators suit my style, how the market pulses, how different news affects price action, and looking for the footprints left by the elephants (there eare manipulators in every market), developing diferent strategies etc.

All the initial research and development has now been done, now I have to put everything to practical use.

Hope to leave a record here each day of the experiences and feelings i have as this process unfolds

Starting Live Trading

This journal will document my journey through this life changing experience. Already so much has had to change to arrive at this point.