After my successes in the first 2 weeks of trading, I am considering putting some rules in place that help limit my risks in future.
Money management is a key facet of successful trading and so far I have been pretty loose with my bankroll. With some good trades and a large dose of luck I have managed to grow my profits much quicker than expected.
However, I don't want to risk a large proportion of my hard earned gains as at some stage I am bound to run into a bad run of results.
I need to investigate money management rules that other successful traders have used to grow their profits, but think a maximum trade of 25% of my available bank will be my starting point.
Another rule that I am implementing is to only keep £500 in my account at anyone time. Any funds over and above £500 will be withdrawn into a seperate holding account.
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3 comments:
You've had an excellent run so far! Go much further upwards, and you could do this full time...
Other things you can do is buy Premium Bonds with the excess. That way you can't be tempted to transfer and spend, AND have the chance of wininng extra. PLUS you can get your capital back within a week or so when you need it for your holiday.
Cheers Steve.
It is still very early days and 2 or 3 bad days could put a big dent in my profits.
But I have been encouraged by my successes so far, and hope to make a part time income out of doing this.
My initial target was £1000 profit for a holiday, but I am now thinking that I could make that and then try for c.£200 a month tax free income.
Premium bonds sounds a lot better than something like crack cocaine
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