ForexSpirit

This week marks the first time ever that I have actually paid myself for my trading effort.

In the almost six years that I have been learning to trade I had never previously taken out any money from my trading account and actually spent it on something tangible. When I think about it this is pretty incredible. Over those six years I have more than doubled my initial account size twice, as well as having blown up twice. All that money gained and it never left my brokerage accounts.

One of the changes I made to my trading plan at the beginning of this year was that I would pay myself each and every month a portion of any money made during that month. I have started with a 25% cut of the money made in a given month.

Its almost like I’m charging myself a monthly performance fee and paying myself that fee.

This way I have some additional monthly income coming in which can be used to pay the odd bill or be spent on a night out. My wife will also be able to see the extra money coming in. This should make a pleasant change from the usual, untouchable trading account money that she probably views more akin to monopoly money than anything else for all the good it has done for us over the years.

I sent in my withdrawal request to FX Solutions earlier this month, and since there was no rush I plumped for the no fee option of having a cheque mailed. Once the cheque arrived last week it took me until Monday evening to get down to the bank and actually deposit it.

I’m rewarding myself for a job well done and a good month’s trading.

It feels satisfying.

Yesterday also marked the resurgence of AUD-USD above the 0.93 level. It was back in early November 2007 that I first started on the downward spiral that resulted in a blowout by mid-December. I can distinctly recall the long entry on AUD-USD at 0.93 that was the first fateful snowflake in the avalanche to come. Price is back to where it was almost four months ago. Along the way it has been an incredible educational experience for me.

It’s probably also worth pointing out that euro has breached the 1.5 level pretty decisively, dragging sterling along for the ride.

I’ve made some pretty decent profits from all three of those currencies so far this week. I’m left with two shorts on USD-JPY which I’ll most likely close out if yen strengthens to below the 106 level.