WOW, 4% profits on 1 single short and repeat that 5x!!!A trader friend of mine was feeling on cloud nine and sharing with me his winning trades of late.
He told me he has been focusing on one single tasks, selling and buying HSI mainly for the last 2 months.
Each short (indicated in blue) earns him an average of 4%. If you look at the chart, you would notice the price action did not goes down to revisit the support line but halfway through, it rebounded (around 23,500). That means, you need to be nimble in such trades with high volatility, especially HSI contracts. Warning - NOT FOR THE FAINT HEARTED.
He further shared that the secret is to stay consistent throughout in the position sizes. That means, for the first contract, say he short 1 contract , he will stick to it for position 2 to 5 as well. If you see position 3-5, had he double or triple his position size, he would make a lot more money (on hindsight).Read article here .
Discipline is key as he educate me on the importance of keeping it sane and following a system.
It could be the other way round as well. By controlling his greed and fear, he has make consistent profits out of this 2 months sideway move in Hang Seng Index. Very impressive , I must say!
Such precise market timing entry requires skills and I would definitely not encourage the newbies to try it. They will likely burn their portfolio faster than they can blink their eyes.
So you see there are hundreds of strategies that a trader can use. Some excel in only forex, others in commodities and some like me dabbling in a bit of everything.
Along the way, you will discover what suits you better in terms of your lifestyle, time to trade, product familiarity, knowledge, etc. This takes time so take your time on the trading playground, you don't have to stick to one. There are more than enough stations for all to play.
