Target achieved

Opening balance £542

Closing balance £611

Day's profit £69

Just over a week ago I sat at my laptop humbled and feeling frustrated having made two stupid trades that wiped out the majority of my account.  Frustrated because I'd been making the same mistakes over and over.

I know I can crack this. I'm bold but I'm not a gambler. I will master this market sensibly enough to earn a living.

Therefore it's a good feeling knowing I set myself a sensible target and achieved it. Just over a week ago I had £289 in my account, today that stands at £611, my target for the week met.

When I sat in on my first seminar I was told that one of the main reasons people fail is under capitalisation. The minimum recommended budget for opening an account should be £2000. I didn't really understand why at the time but now I do.

The cash balance is there, not to max out on any one trade but to act as a buffer when you take a position. It's nigh on impossible to do anything other than micro scalping when you have no margin. Not every trade you make initially goes the direction you hope, there may be a really obvious entry point but sometimes I've jumped the gun in order to 'get in early'. Knowing when to enter a trade is something I am picking up fast and will need to refine ongoing. It's better to take a few points less and be as sure as you can than try to be clever and be too early.

Having a margin forgives me this missjudgement,. I have had to close a few trades that have hurt due to lack of margin only to see them turn the way I planned shortly afterwards.

So I have added another £500 to my account which will allow me to watch and play the 5, 15 and 30 minute candles and allow me to trade without the fear if imminent margining out. I know I said I was a scalper and it's true, that's the method of trading that suits my character best but I need to sometimes play a little longer.

I have taken a short on the market earlier today at 5505, it's currently 15 points higher but I now have a margin to let the trade ride. Also it means I don't have to sit scalping for hours watching every minute candle.

It looks as though we're coming to the end of the current bull run and I'm in a reasonable position to surf the index as she slides to 5200 over the coming weeks. If there are a few brave souls who drive this upward I have the margin to wait.

It also means I can devote more time to my work next week which I have neglected al ittle and needs me.

My plan for next week is to leave the short in place, if it turns against me for the week I shall trade a couple of hours a day on retracements and top up my cash balance. If it goes my way I will add to it and trail a stop loss to lock in profits.

To recap my initial investment in trading is £2000

And my current cash balance is £1112.

I'm £323 better off than this time last week having more than doubled the £289.

I've been a fool, made some stupid decisions which is why I funded the account in dribs and drabs, hopefully I will not make the obvious mistakes again. Now though, after the confidence of trading sensibly and profitably the whole week it's time to have a go. 10 points a day at £10 a point is £100 per day.

 I'd be disappointed if I don't have my £1500 by this time next week.