Sunday, January 16, 2011

My plan for 2011...

It seems my dreams of becoming a full time prop trader with Keystone Trading are rapidly evaporating smoke. I knew it was a big risk emptying my account to pay the "tuition" but I really thought that the upside was worth it. In hind site, I wish I had gone with CY Group as I was initially going to do or even with Broad Street who I discovered later. At least that way if I lost the 5K then I would be accountable although I doubt that I would have. Its way more likely that I would have been sitting on profits. I was intimidated by direct access trading and all the usual talk of day trading being fast paced and risky. This suckered me into the "tuition" approach instead of the "deposit" approach.

I am not saying this to talk anyone out of taking the "mentoring" programs such as those that are offered by Keystone especially if you are a complete amateur. However, if you have proven that you can be consistently profitable with your own system then I believe that its best you stick with your own system and not be tempted by the lure of leverage no matter how small your account might be.

Anyways on to my future plans for becoming a full time trader. So I now have two weeks left with Keystone in order to get to $500 net profit in order to become full time with them. Right now I am under water by a little over $100 and it seems unlikely that I will get to the goal especially since I have to travel for three whole days next week and will most likely not get to trade.

So as of now I am operating under the assumption that I will not become a full time prop trader and that I will be back to approx. $0.00 in my trading Wish I could turn back the hands of time but hey, you live and you learn. On to my plan.

I will resume full time duties as I had asked to be part time so I could facilitate my apprenticeship with Keystone. However, now that it seems unlikely that I will be with them after January; I will seek to resume full time duties at my job. From there, I will try to save between USD $500 - $750 every month. In the first couple months or so I will focus on taking swing longs only until I get up to the 2K level required for margin trading. Then I will continue to add money to my account and take swing longs and also start taking swing/day trade shorts on low priced stocks that have gone parabolic or are breaking down from topping patterns. This I will do until I get to 5K. At this point, I will have a tough decision to make: either to join a prop firm like Broad Street or to continue on my own. I know that staying on my own will likely mean that I will take longer to become full time but at least then I have complete control over my destiny!

Should I continue on my own, I will continue to work full time, save and day/swing trade long and short my Thinkorswim account it gets up to around 10K. Then I will be able to open a direct access account with either IB, Speedtrader or Lightspeed (which happens to be my favorite). Most likely I will go with speedtrader since they have the best combination of what I am looking for for my strategies to work best.

From here on my focus will be getting to 25K and past the ridiculous PDT rule. I estimate I will be able to do this by this time in 2012. From that point on my next goal will be to get my account up to 100K within the next two years while also doing my Masters degree with the view to trading full time after university by around  

After stumbling many times with this vague dream of being a millionaire in my mind, I have realised that I am more likely to become a millionaire by setting smaller goals and watch them add up to my ultimate goal. I am more likely to be disciplined and patient and not take big risks this way.

Continue to follow my blog to see how my journey progresses. I will fund my account by the end of this month and resume posting my game plan nightly and monthly trade analysis.

Here's to the future and the wonderful possibilities!

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