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Trading Analysis

May 7th, 2012 at 07:47 am

6 months ago I decided to have a go at trading full time. Since I quit my work mid last year, it was a good opportunity to do what Iíve always wanted. Iím starting very small; my main aim is to just work on my trading strategies and plan.

My goal in this first year of trading is to survive and if possible do the following:
1.Keep my capital
2.Outperform the XAO (Australian Index) = 3-5% during trade period
3.Outperform the Online Savings interest rate = ~ 6%
4.Outperform our Mortgage interest rate = ~ 7%

Iíve decided to analyse my trade every 20 trades, I think it is just enough number to have a comprehensive statistics.

Trade Period = 6 months
Total Number of Trades = 20
Total Number of Winning Trades = 8 (40%)
Total Number of Losing Trades = 12 (60%)
Average Win to Loss Ratio = 2.7
Average Trade Hold Time = 31.7 days
Average Winning Trade Hold Time = 51 days
Average Losing Trade Hold Time = 18.6 days
Percentage Return on Capital Outlay = 53%
Percentage Return on Total Capital = 15%

Trading is hard work but it can be very satisfying. I like the lifestyle, I love working from home and I can do it anytime I want.

15% is not that bad considering the Australian market has pretty much gone sideways in the last 6 months. There is definitely room for improvement (hopefully).

2 Responses to “Trading Analysis”

  1. Tabs Says:

    Fascinating. Please keep updated since I'd be interested to know how it goes.

    Is this day trading? Options? Futures? Penny stocks? Forex?

  2. Shiela Says:

    I'm trading normal Australian stocks (for this current strategy I only trade the top 200 stocks) but I use CFD. I don't day trade but sometimes I can get in and out the same the day if my stop loss order gets hit. As you can see my average hold time is around 3 weeks for losing trades (but I think I had 1 trade where I got in and got stop out the next day, it happens) and almost two months for a winning trades. I just let my winning trade run.

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