(It’s only fair that I share bad days as well as good, right?
At my desk by 6.55am! Good level of self-confidence, energy, alertness. Proceeding to….. a total washout!!
I ended up with a loss in excess of 4R – I just couldn’t get the trades right. I made good correct reads of EURUSD, Cable and then EURJPY between 7.30-9.30am, but didn’t get into any of them because the desired retracements of a few pips just didn’t happen (I had actually placed the limit-entry orders).
A lot of the trades went on the DAX – it ended up having a tight 60-point range until the end of the cash market (4.30pm GMT). For some reason I kept on buying the near the top of the end of the range, betting on a rally to the 12,400 level. It looks rather silly in hindsight.
In early afternoon a Japanese official commented that USDJPY should be trading at 105 which triggered volatility in the Yen crosses. I shorted USDJPY and EURJPY risking 1R on each as they retraced (thinking back to RBA comments re AUDUSD and how that turned out). I ended up getting out with a 0.5R loss in total. Both would have eventually hit the full stop.
I ended up with some late trades on long Cable, long EURUSD and short DAX – which netted back around 0.4R. But they were probably a bit in the afternoon.
So a pretty hectic day. As my R is now up to £140, the loss for the day was just shy of the £600 mark.
I am thinking that there will be days on which I will end up with a 5R loss or a 5R win, simply because the win rate is around 45-50% and I am taking a lot of trades on some days. A loss of 4R doesn’t mean that i traded really badly. Likewise a win of 5R doesn’t mean that i traded like a star. What really counts is the net result for a week or a month.
Well I guess I would rather take the 4R loss in one day, learn quickly and move on, then drag the 4R loss out of over a week.
The destructive trader inside me was responsible for all of the trades past 3pm – I had already decided to finish trading for the day and just to spend some time reviewing. How’s that for a detailed psychological review?
However on the flip-side….
Remember it’s advisable not to have all of your eggs in one basket – a couple of nice non-trading things happened. I managed to give a good helping hand to my nephew with his school-work and then I ran 7.5km around the City of London in a pace that i never thought that I could do (4:02/km average!!). Oh yes – there is a picture of me (well, at least that’s what it felt like!)
Bring on tomorrow!!