Jul30+Jul31 Trading Notes

Wednesday’s session was equally bad in terms of results – the string of losses continued.  I was too worn out by the afternoon to be able to jump on some of the big moves in Yen weakness and dollar strength.  Ah well, next time. The string of losses comes to a loss of 13R in 5 trading sessions – that’s quite a whopper! Questions to ask at such a point in time:

  • Are the market conditions right for my trading strategy? For example, could the quieter summer period, or a potential lull ahead of key risk events – have an adverse impact on the working of my strategy?
  • Is there something wrong with me?  Am I too tired, stress, not healthy?  Am I being too extreme with my emotions such greed or fear?  Going to Paris for 5 days, without a computer, should certainly help me to relax!
  • Is my risk+money management intact? Yes
  • Has anything changed from the time period of the 4 winning sessions where I made 10R? [These 4 days were immediately following by 13R losing streak]  I have started to put most of my trades through LMAX rather than FXCM, though I would surprised if that changed anything.
  • How is my trading competency?  Have I been less accurate, less strict in recent sessions? Am I making some technical errors?
  • Today I didn’t work and rested instead, ahead of my 5-day trip to Paris, for another speed-skating competition.

Also had a skype with my trading coach today – he encouraged me to:

  • Get on and implement a mechanical-based position management approach
  • Start analysing my completed trades to gain potential insights
  • Remember to keep my losses small – he said it’s good that I am avoid 1R losers most of the time – get out early if it looks as if the trade is not working
  • Not to get stressed about a string of losses – next week is a fresh week

 


 

Additionally, here are some thoughts I jotted down prior to skyping with my coach:

What’s happening at the moment?

  • Good: Visualization, trade documentation, two strategy approaches (EMA’s and news-driven), regularity of working hours, risk/money management is good.
  • Bad: Results are negative, going through a bad streak.  Emotions are not so much under control – quite a bit of up and down (even though I have got a long-term attitude; until Oct next year). No position management approach

What should I do?

  • Keep on doing the good stuff – visualization, trade documentation, processes
  • Investigate why the results are bad – market condition, taking invalid setups, missing good setups, poor position management, variance?
  • Talk to Joel and walk him through some of my trades – see whether he has any feedback.
  • Design and implement a mechanical technique for managing the positions.
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