About Me

I’ve been day trading various Stock Indices and FX pairs since October 2007.
The learning curve, particularly bearing in mind the volatility that commenced shortly after that date, has been interesting and challenging to say the least.

I ploughed many, many hours, 7 days a week into observing and understanding price discovery processes that markets would follow and learning to recognise changing market characteristics, thus continually reviewing the various trading styles and systems I’d developed.

For the first 18 Months to 2 years the learning curve was costly, but from around September 2009 things began to improve and I’d find myself making consistent profits Month after Month.

The number of hours being ploughed into this was always immense, but the profits seemed to make it worthwhile.

Over this relatively short trading career I’ve developed a number of systems for day trading and scalping, always openly sharing my thoughts and analysis on one or two bulletin board threads. The problem here lies with the fact that it’s very difficult to both moderate and refer back to specific analysis on a popular bulletin board thread that has received 2 million page views and 90,000 posts in the last year alone!

I’ve worked on various projects and strategies aimed at improving overall profits, for example, closing out 95% of a day trade position and running the remaining 5% as a swing trade (only if the direction is the same as the overall daily/weekly trend). Over time, the accumulation of scaled in “5% trades” evolves into a reasonably sized and profitable swing position.

The most interesting and successful project to date involved a challenge to turn an initial £25 trading balance into £2000 in one year to prove that anybody with discipline and a good understanding of the market could achieve this with no starting capital by sticking only to tiny position sizes and trading only the best possible intraday setups. The project achieved it’s goal and a £2033 balance was recorded on the 12 Month anniversary. Work out the percentage gains on that! But could you or I do the same with a £25,000 starting balance? Probably not because it’s a fair amount of money for most of us to risk losing with what is effectively a very high risk and highly leveraged strategy, and emotions will always try to get the better of you when placing larger stakes at risk.

My favourite and most successful trading style is most certainly scalping (remaining in trades for 2-3 seconds per trade, right up to 5 minutes), but it is extremely labour intensive.

Day trading (remaining in positions for a number of hours, usually closing out at the end of the day) I find a little more difficult to remain focused on but have had reasonably good success overall.

More recently, I’ve come to realise my work/life/health balance has suffered through the sheer number of hours studying markets each day, the stresses associated with holding many positions through volatile times and the work involved in maintaining 3 different trading styles and systems across so many different time frames. I’ve therefore decided the cure to fixing this seems to lie within Swing trading as it removes the need to constantly monitor positions and intraday volatility, particularly on data releases which just become “noise” in the bigger picture. Swing trading significantly reduces the time required screen watching. I’ve called it “swing trading” but in actual fact most entry setups I take aren’t technically Swings and they’re simply based on support and resistance on daily and weekly charts. I don’t very often stay in a position for much longer than 5 – 10 days unless there is a compelling reason to.

And that is where I want to focus this blog – as a personal reference point to my own analysis, my own trades and as a personal show case for what does work, and of course, as is always the case with ever changing markets, learning and understanding what doesn’t work.

Disclaimer:
No information on this website should ever be construed as financial advice of any kind. I’m happy to freely share my trading successes and failures with you, the reader, but I take absolutely no responsibility for any gains or losses that you make by choosing to trade based on information and opinions provided within this blog. All trades and positions detailed by the author within this blog are real positions taken with real money unless stated otherwise.

22 Comments
  • joe moon
    Posted at 16:19h, 02 September Reply

    good luck hope it goes well

    • Index Trader
      Posted at 17:44h, 02 September Reply

      Thank you, very kind of you.

  • Yahoon
    Posted at 07:42h, 03 September Reply

    Good Luck and don’t give up.

  • bracke
    Posted at 15:06h, 05 September Reply

    It seems slightly odd to refer to you as Index Trader but whichever name you use I will follow your blog with interest.

    I hope it does ease the stress and strain on you and allows you a less frenetic life.

  • ICARUS
    Posted at 22:15h, 05 September Reply

    Looks great RS, best of luck, how about a ‘Strategies’ area?

  • Index Trader
    Posted at 18:11h, 07 September Reply

    Thank you all for the supportive comments!

    Strategies area…..need to think about this, but it sounds like a good idea.

    As all the FX bb readers know, my strategy is relatively simple…. a few well place lines, some fib levels , SMA’s and a dollop of MACD divergence!

    I think over time, the trades detailed on this blog will give an understanding of the type of setups that interest me.

  • Kasamavic
    Posted at 20:44h, 09 September Reply

    Good luck with this RS i hope it works out for you, don’t forget though the market is always here, you won’t be. Try and find the balance and maintain a decent family lifestyle, don’t miss the kids growing up and you can even take the old jalopey out for a spin (if you still have it)

  • Trading FTSE
    Posted at 16:08h, 22 September Reply

    RS – Nice looking blog and great analysis as always. Will be interested to learn how you trade the FTSE 100 index in particular, plus keeping an eye on your DOW & SPX trades. Are you going to be sharing your scalping strategy or just the swing trades?
    Kind regards,
    Tony

  • bleunose
    Posted at 11:26h, 25 September Reply

    nice one rs . been with you over the last few years on advfn .Unfortunatly my learning curve was at too great a cost . i totally agree with the life .work balance its the only thing to have kept me out the loony bin . would be interested in contributing if i can into the most important side of trading which is the unseen unwritten side which is controlling the emotional side . Good luck

  • RS2OOO
    Posted at 11:37h, 25 September Reply

    bleunose,

    Thank you for the offer. That would be great for some alternative material for the Education and Strategies section and to create this, some of your ideas on “INDI” have been right at the forefront of my mind. Might take some time to set something up as I’m still in early stages of working out how I want to manage the site, but hopefully you wont mind if I drop you an email and we can go from there.

  • bleunose
    Posted at 12:16h, 25 September Reply

    no problem mate drop us an e mal any time. some awsome trades last week by the way

  • ashley0502
    Posted at 12:46h, 07 February Reply

    RS- Nice blog, not sure how you manage it with holding down a full time career as well. Could you mail me as I may have something that you would be interested in regarding trading.

  • and then
    Posted at 11:41h, 08 February Reply

    Cracking blog mate, keep up the good work, (but not at the expense of the family!)

    *edit* bugger; the missus has just read that!

  • TomL
    Posted at 00:19h, 13 February Reply

    Well done, RS2000 – you are one of the very few that come through.

    Success is always on the other side of failure. In financial markets that can only be attributed to hard work, patience, sheer persistence in the face of setbacks, objective analysis, discipline in execution and trade management, consistency…and, of course, finding an edge! You certainly appear to have found yours – long may that be so.

    To your continued success – with all good wishes,

    Tom.

  • Lokesh8
    Posted at 22:49h, 13 February Reply

    Hi,

    Only found your blog today

    I have been following the FX site on ADVFN , Im new to all this and hope to understand a little more then i do now …I know nothing on Fx and pairs etc ect. I have read your “about me ” and i have also been trying to Scalp and it is very time consuming, especially when you have a full time job, and does the heart race, I thought it was to much sweetner in the coffee. LOL … started to let go a little and let my trades run on a few days.

    Happy to read your posts.

    And thanks for posting

    Lokesh8

  • RS2OOO
    Posted at 22:49h, 13 February Reply

    Thank you for the kind wishes Tom. It’s a pleasure to see you on here.

    Lokesh8, Welcome. Read this post. It’s the bits that seem most boring about trading that will protect you and your Capital in the long run:
    http://www.indexswingtrading.com/general/over-leveraging-kills-your-trading-pot

  • Lokesh8
    Posted at 06:58h, 14 February Reply

    Thanks have read it ….I have also worked out small leverage is better…..

    I just need to understand direction ..Short or Long….

  • Olu
    Posted at 00:23h, 26 February Reply

    Hi RS2000

    Great site. I stumpled on your blog searching for position trading strategies. Will be visiting and posting here as you do on mine. Funny last week I went for yield and bought the aussie. In hindsight I sould have bought the euro instead. Anyway I await sunday opening…

    Olu

  • ICARUS4123
    Posted at 17:46h, 21 April Reply

    Hey RS,

    The site is still getting better and better. I wondered what you thought about a trade idea/set-up section for swing trades. This would be populated by your viewers as a template and possibly rated by them afterwards. Might help extract the good stuff from the likes of ADVFN and filter the banter, insults etc.

    So a template something like,

    Trade Idea

    Unit: GBP/USD

    Trade : Buy

    Timescale: 2-3DAYS

    Entry : 1.6090
    Stop : 1.6050
    Limit: 1.6200
    RR Ratio : 1 : 2.8 (guess)

    Reasoning: A summary of the actual reasoning and logic behind your trade idea. This can include but not limited to Elliott Wave, Fibs, Support, Resistance etc (text box)

    Personal Trade Conviction Strength: (1 to 5)

    Bragging rights prize and damp squid prize each week for the best worst trade idea’s. Obviously this may require work initially but there may be support available.

    What do you think?

  • RS2OOO
    Posted at 19:28h, 22 April Reply

    I think that’s a great idea ICARUS.

    The main part of the blog is intended as a personal diary really and my intention has never been to go down the more commercial route but I’d like publicly share ideas with the hope of inspiring readers to comment or offer alternative view points and your idea offers a great way to encourage this.

    My commitments and workload are through the roof at the moment, but give me a few Weeks and I’ll see what I can come up with.

    Thanks

  • Bart279
    Posted at 23:37h, 26 April Reply

    Great blog RS
    It’s given me the courage to cancel my ftse100trading subscription and I’m now an avid follower of your trades.

  • btsuck
    btsuck
    Posted at 20:47h, 20 February Reply

    Nice well written ‘about me’ RS/index trader (why the pic of the RS? I always had you down as a good writer.
    And some great replies.
    I’ve changed my avatar. Not sure why the one I used with an old youtube channel was allocated when i registered. I don’t even have it as the macbook died.
    I started trading indicies in sept 2000.

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