I'm not going to do any real trades for a while until I am satisfied that I've got my act together. In the meantime I'm in "trading school". Did 4 simulated trades so far this morning - two on the SPI (Australian Index) and two on the Nikkei. All have made money. For the Nikkei trades I am using a version of the rule of three - entering the trade with three contracts and then scaling out. The exits are all pretty random though, though I am trying to exit the last contract at my actual target based on the stochastics and/or using a stop. But it's helping - my second contract is being sold at a higher price than the third. This approach ensures that winning trades don't become losers, which is what often happens to me. Nikkei mini contracts are small enough for me to actually do this with real money. SPI contracts are so big it would be way too scary to enter with three contracts - I don't even have enough money in my account for that amount of margin at the moment!
Still, I am left a lot of money on the table in my SPI trades. Being able to scale out would have increased the rate of return.
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