Increasing my capital today to £1749
By Chris Chillingworth
If you’ve been following my blog you’ll be aware that i’ve made some rather good money in the last month or so and seen my Return on Investment (ROI) rise from 20% to around 49% in that same time.
I’ve also recently been raking a bit of extra funds together to trade with and increase my capital. You see, I don’t trade with my family’s money. It would put too much pressure on my shoulders to succeed, and whilst I’m confident of my ability to overcome those emotions, I don’t want to do anything that brings pressure into what is a good profitable setup. It’s just not worth the risk. If I lost my families money I’d be devastated so i’m not going down that road.
As a result I don’t have a lot to play with but I am keen to put more in. I started this system in June 2012 with about £900 invested. Raised that to £1200 (as per what it says in my About Me page I think) and soon after that I put a bit more in to reach £1469 around September time.
In this game, I believe that money makes money. If your unsure about that then here’s a brief example of what I mean.
- If I had £1000 in my account, and I achieved 40% ROI a year, based on 5% risk per trade (£50) i’d be left with £1400. (£1000 + 40% = £1400)
- If I had £10000 in my account, and achieved 40% ROI a year, based on 5% risk per trade (£500) i’d be left with £14000. (£10k + 40% = £14000)
It’s rather simple really. The higher my capital, the high £ per point I can play and still only risk 5% per trade.
So i’ve pumped an extra £280 in today. Bringing my Capital Invested up to £1749. You may have noticed the Current Positions sidebar changed to reflect this. As a result of having increased my Capital my 2012 ROI has dropped as my profits represent a smaller percentage of my Capital. It now sits at a rather respectable 37.43% but is a significant drop from before. Of course, adding Capital means my equity rose in accordance as well in case your wondering why some of the figures have changed.
I also lost a bit of value on my open positions today. Nothing dramatic, about £60 lost. This happens now and again and isn’t significant an amount to concern me. I was certainly glad of my SHORT positions today though as the whole market seemed to tumble. They definitely reduced my losses today by bringing something in to counter all the profits I was losing on my LONGS.
This loss today will also have contributed to my drop in ROI %.
Still, the achievement of turning £1789 into £2403 in 4 months is a great result and I hope it continues long term. If 37.43% ROI was to be my final result for 2012 i’d be very happy.
I plan to raise my total investment figure to the nice round figure of £2000 eventually. At which point I will probably stop pumping anything into this and allow it to grow organically with a view to withdrawing my £2000 once i’ve hit something like £20,000. At which point i’ll have my investment back in my pocket, and i’ll just be trading with profits made.
On a side note, since to move of this blog from my free WordPress one we’ve had some serious hits coming in on a daily basis from visitors all over the world, and we’re not even getting any Google traffic yet. I just wanted to thank everyone who visits, reads and especially thank those who comment and email me. I enjoy the emails and I hope you’ve all found me to be a helpful chap. I’ve no product to sell or anything like that but i’m always happy to recommend the courses i’ve used, books i’ve read, blogs I read etc. If you have any questions please do get in touch. I’m usually quick at replying and will always try to be as helpful as possible.