DAX CFD Day trading for a living. That is something I dream of and that is what I would love to do. I have found a strategy wich might make me more money than my day job does. But it might go wrong if you don’t pay attention.. 🙁
Day Trading Diary: Starting with €20,000
I used a demo trading account to trade CFD’s. These so-called contract for difference makes it possible to use only €150 in your account, trading with leverage 1:30. That means that every euro/dollar you invest in a position is €30,000 to trade with.
Contract for differences are perfect for day traders. Only in the long-term they end up more expensive and are therefore not meant to keep that long. Opening and closing positions is best done on the same day.
I opened a FREE demo trading account with Plus500 CFD Service. In the account appears €20,000 virtual money (Editor note: currently you get 40K in virtual money with a demo account – get a free account here)with which you can trade the market with for real quotes and rates. Trading for a few hours to discover my new trading technique made it possible to gain a profit and have my wallet grow from 20k in the beginning, losing money until the balance reached 10k and making only profits until the stunning amount of €60,000! Check this screenshot from the account:
As you can see in the above screenshot of my account, all the positions end up in the green. A few things might not go unnoticed:
- I have only traded Germany’s 30,
- I usually trade a lot of 20000 contracts, requiring €5,000 margin in the account,
- All trades listed in this screenshot were opened and closed on the same day: March 17, 2014,
- I have used bot the limit function (profit call) as a manually close of the position.
Day Trading Diary: Falling to €1,000
This is the sad part of the story. After not paying attention (I had to babysit my little daughter) the Germany index collapsed that day. My balance went south to a whopping €1,000. I was glad to have a demo trading account and not to have lost all my money!
This is the screenshot of the two positions that were responsible for the almost depletion of my account:
So what happened?!
Well, the two short positions were a wrong turn. Spending time with my daughter was quite expensive (virtual money!). Not paying attention to my positions nearly got me broke if it was a real trading account. I have learned from this experience that I should not have any positions open when I don’t have time to keep an eye on them every 30 minutes.
Day Trading Diary: My Strategy
You already know what that I have traded the Germany 30, e.g. DAX. But how was I able to gain suck a profit in only 2 weeks?