Good On Demo

Posted by Deb | Day Trading Journey | Thursday 10 January 2013 8:46 pm

As always, it is frustrating to see I make money on demo, but when I go on live I fail. Though today, I saw why I should stay for a while on the demo – I don’t have yet the assurance and conviction needed to wait on a good position.

I traded today on the demo only. When I opened the graph I saw a good opportunity for a short position. I didn’t jump in, checking first that indeed the market has not dived the full potential of the current downward direction, and then opened a position on short with one contract, but putting an order for 2 more contracts a bit higher.

The market was very hesitant, and after a while the 2 additional contracts were caught. But it still didn’t go down. It was going up and down, drawing a stairway-like graph.

Stairway Type Graph

After a while I decided to add 2 more contracts to average it out and get out of the position quicker. But this was not enough. The market went up again. But I was sure it will go down.

5 minutes later, the market went down. It was still jumpy, going through the stairway as in the graph, (or maybe I should call it going-down-on-waves?). I finally quit on 2 contracts, than added 2 higher, and finally quit the position with a profit of $75, which is not much for the number of contracts I put in.

Surely enough, in the next few minutes the market went further down, making my potential profit much higher.

What did I learn from that? That I should be more sure of myself. Even on the demo I wasn’t sure enough to wait through. With live trade I would have probably quit earlier, maybe with a loss.

 

 

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