Now working in Bayreuth in Germany. No trades undertaken today, and paid little attention to the charts.
Spent most of the day looking over the 200+ trades I have completed since the start of July. I just cannot believe how bad these trading results are:
223 trades – 54 winners netting 55R and 136 losers losing 88R plus some 33 scratch trades. This results in a net loss of 33R or an entire 1/3rd of a trader’s bankroll if he risked 1% a trade and did not readjust his position sizes as the losses accumulated. In other words, if I was a $100 million hedge fund, then the fund’s assets would be down to $67 million in 10 weeks of trading. (However because I am exercising risk management, thus only risking £50 per trade until I am showing consistent profits, these “huge” trading losses have in fact reduced my bankroll by less than half a percent [or half a million in the hedge fund example)
I know I traded badly, albeit with less discipline than I should have exercised, during July and much of August. From mid August onwards I finally became more disciplined, however the results have not improved – if anything they got worse. Hmmm…..
During recent days I had good talks with my trading colleagues, my trading coach, my sister and my wealthy raquetball partner – I took insights from each of these conversations. The insights relates partly to technical adjustments to the trading strategy, and partly to potential psychological issues that may adversely impact my trading. Thus I spent much of the day looking over the notes from these conversations and thinking things over in my head, whilst taking some walks in the local park here and hanging out with my niece and nephew in the breaks.