11th Oct – Friday night update

Today was a bit of a wash-out.  Following a lot of beers on Thursday night playing billiards, I felt rather seedy.  I wasn’t planning on trading in any case, although I saw a nice setup on the DAX around 9/9.30am.  And sure enough, the market fell through 8,900 level right down to 8,800 – though I did not take it.  Again the market fell 100 points without looking back.  Also listened to some of the commentary in the THT trading room.  Then had another time out at Cafe 1001 – did a bit of planning.

Came back home, wrote some notes – took one trade on the DAX, this time betting on the break of the 8,800 level – this did not work out and I took a 1R loss.

This evening I caught up on the trade journalling and documentation. Finished that just after 10pm. Though I did see a movie at Prince Charles cinema at 2pm and then played squash for two hours (I lost 4-5) – so I can’t really complain of working for a couple of hours on Friday night.  Welcome to the life of FX trading!

I know that I have posted a lot of charts this week, however I wanted to post one final one.  Before I do, let me say that I will stop posting the chat for every trade.  Instead I will probably just post ones that taught me something specific.  The chart below for example brings out a specific point regarding position management, or more accurately, how NOT to do it – because on this trade I arguably left a lot of points on the table.  Although it was a +1.25R win, it should have been more in the region of 3 to 3.5R.  This probably shows (again) that at the moment, my position management is ruled by fear to a large extent.  Thus I am aware of it, and can do something about it (the Position Management Plan is a big first step for that).  A trader from the Trade2Win site suggested that position management arguably needs even MORE DETAIL than the setup criteria – he is probably right.  Further, he suggested that taking half the position off at T1 is a bit of half-hearted approach.  Interesting – I will look into that.  Anyways, here’s the chart from the DAX trade (Trade #305):

dax 305

Thus all up a really good week.  Nice trading results, and it felt like I learned more about trading.  One step at a time.  Next week I will just try to keep on being in the same zone, in the same condition that produced these good results over the past fortnight.

As it was another profitably week, I am going to increase the monetary value of 1 unit of risk from £67.50 (this week) to £89 next week.  Not enough for my brain to really notice, but a good percentage increase.  Funny that in the past I have risked as much £1,500 a trade.  That’s what I will be trading at again, and more, if things go according to plan.

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