The Goal:
To make an average monthly return of 6-7%.
The goal is to leverage the rules of compounding. e.g. Starting with 5000, at a rate of 6% per month, you can have 500k in 80 months (~6.5 yrs.), and 1 million in 92 months (~7.5 yrs)!
Is 6-7% per month too much to ask for? It is if you are putting your money in the bank, but if you are ready to take some risk, with my experience, I can tell you this is possible. The commitment is that it should be treated like a business, so now onwards I will mention the whole endeavor in the business like manner.
Friday, January 19, 2007
Introduction:
I will be honest and straight forward. I am here to make money from financial markets. That is the objective. It will be done step by step, according to the plan, and with the strategy (all described later).
I have been trading for more than 10 years. I have made money and lost money. I have read lots of books, and tried many theories. What I have learnt is, you need a system, and discipline to follow the system. The point is this endeavor should be treated like a business.
Everybody has a challenge to work with. For me, I have a full time job. I can not sit in front of the computer to watch the market, so for me, trading is treated as a part time business.
Although, I will proivide the details, in brief, I follow a strategy which does not require me to be glued to the screen constantly. What I like about this strategy is, I do not have to be perfect to profit. A reasonable estimate earns money as long as the market remains below certain level! I use simple strategies - selling options using ratio spread, and credit spreads.
I prefer technical analysis, and I focus mainly on futures markets. If you are inclined towards fundamental analysis, you may not find much here, but you can combine your knowledge with the technical analysis to make a better decision. I will post the analysis and charts which make me lead to the trade, and will also give the details of the trade. There are two reasons for this blog. 1. To keep myself on track with my goal, and 2. To prove that money can be made in the markets.
I have a plan. I have an objective, and I am going to make money!
I have been trading for more than 10 years. I have made money and lost money. I have read lots of books, and tried many theories. What I have learnt is, you need a system, and discipline to follow the system. The point is this endeavor should be treated like a business.
Everybody has a challenge to work with. For me, I have a full time job. I can not sit in front of the computer to watch the market, so for me, trading is treated as a part time business.
Although, I will proivide the details, in brief, I follow a strategy which does not require me to be glued to the screen constantly. What I like about this strategy is, I do not have to be perfect to profit. A reasonable estimate earns money as long as the market remains below certain level! I use simple strategies - selling options using ratio spread, and credit spreads.
I prefer technical analysis, and I focus mainly on futures markets. If you are inclined towards fundamental analysis, you may not find much here, but you can combine your knowledge with the technical analysis to make a better decision. I will post the analysis and charts which make me lead to the trade, and will also give the details of the trade. There are two reasons for this blog. 1. To keep myself on track with my goal, and 2. To prove that money can be made in the markets.
I have a plan. I have an objective, and I am going to make money!
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