I have been trading for about 12 yrs, but have had some bad patches, I have not always been as successful as I have over the last 2 yrs. I kept listening to others and not playing my own game. When I lost, I dropped out for a while as I was put off trading.
Strangely enough I had never traded RIO until just over 2 weeks ago, when a friend told me how volatile it was. That was perfect for me, as I am used to trading indices and currencies, and have played those for the last 2 yrs specifically because of the volatility.
The amazing thing is that with volatile trading, you dont even need to go for a high £ pp to make decent money. The idea is trading in and out, grabbing the points off the table as many times as possible without being too greedy and waiting for the kill. Waiting for the kill often gets you killed, as it reverses and mows you down.
You cannot be right all the time, and there are going to be losses, but to minimise them, I go in up to a maximum of £20 pp (sometimes as low as £5 pp), and that way I can ride it out even when it goes against me. It almost ALWAYS comes back to the entry point or close to it, close enough to close at a minimal loss.
This is what works for me. I can sometimes do 15 trades a day. To give you an idea, the last 6 weeks has netted me an average of £1,500 per week, not a fotune, but I am happy with that. I am currently nursing losing positions to the tune of about £1k, and am just sitting it out. Those are on the DOW which is currently very high, patience is a virtue.
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