My Vision

So the goal is to earn S$1,000 a day through CFDs. Right now I'm at S$140 - that's cos I'm trading US$5 contracts at a 2 pip limit (my initial investment was S$15,000). How is this going to pan out?

Firstly, understanding how to trade CFDs is important. Google "candlestick patterns" for a wealth of info. Also "price action" strategies, and "RSI indicators". These are what I'm using. I also picked just one currency pair (AUD/USD), so that I'd be well acquainted with its price action, and not waste my time constantly shopping around. I'm looking to earn money, not really super big money, so it's ok if I miss out on opportunities elsewhere. I'm also aware of the Australian Bureau of Statistics Calendar and that it's announcements are usually at 1130hrs Canberra time (0830hrs in Singapore, but 0930hrs from 2 Apr 2017 onwards due to daylight savings), so I'll usually wait an hour after that to trade in case there are crazy jumps in the exchange rate due to the news. It's also because it was the most affordable margin at S$2,200 per dollar contract on IG. I chose IG as my platform cos of its tight spread (0.6 pips) on AUD/USD, and the fact that it's regulated by MAS.

Next, I use a strategy of taking profit based on limits. The benefits of this is that I don't have to keep staring at the charts all day. Once I open a position, I leave it open till it closes. Some might call it risky, but so far it's been working great.

My CFD journey began on 9 Feb 2017. With an initial investment of $15,000, I made S$1,400 in ten days. But then, I began doubting my system and when I hit a paper loss of S$1,200 one day, I closed it out. This gave me a profit of S$200 in ten days. Still not too bad I thought - until my limit level was hit the next day (I realised this cos my earlier alert was triggered) - and that was my $1,200 lesson. Since then, I've never closed out a losing position, even going so far as to run a S$2,000 paper loss, pay S$50 in overnight fees, and finally ended up with a winning position. That was a long wait, but a rewarding one, affirming my overall strategy and understanding of my chosen forex pair AUD/USD.

So exactly when do I foresee me hitting my goal? Well, if everything pans out, this should happen in 231 weekdays' time. Here's how:

Currently, I'm trading $5 contracts. My safezone is S$3,200 per contract, which gives me a 70 pip (or 700 points) balance to ensure I don't enter a margin call. This means that for a US$5 contract, I need S$5 x 2,200 + $5 X 1000 in my account, i.e. S$16,000. At a profit of S$140 a day, I'll hit S$3,200 in 23 days. That's when I'll up it to a US$6 contract i.e. profit of $168 per day. Then that's gonna take me 19 days to hit S$3,200, before I up it to a US$7 contract. And so on and so forth. So if you do the math, I'm 231 days away from a US$36 contract, which at 2 pips a day gives you S$36 x 20 x 1.4 = S$1,008

Watch this space as I chart my journey to financial freedom!

Edit: If you've seen some of my later posts, you'll know that I've changed my trading system due to some massive losses. I'm now scalping 5 to 10 pips instead (since 9 Feb 18), with 2 rules on entry to prevent overloading. First, only trading at 2359hrs on Mondays, Tuesdays or Wednesdays, and only in the direction of a double bar. Second entry condition is that I also trade in the overall trend direction if I notice an equilibrium that day. So far this system works because I can take losses and still remain profitable (unlike my previous strategy), plus I don't have to constantly observe the charts if I don't have time. This strategy has seen me achieve my biggest gain so far (50% as of Apr 2018), and though that dropped down, I'm still profitable after 3 months of trading (longest record ever). The goal is to achieve 100% returns in a year, then I'll put in some serious-er cash (current capital investment of $250).

Edit 2: Again, I've changed up my strategy countlessly. Just check out the more recent posts, haha...

Yours,

X