You know that story where a guy is busy cutting down a tree, and his buddy comes along suggesting that he stop for a second and sharpen his saw? The guy replies, “I can’t – I am too busy cutting down the tree.”
This pretty much describes how I am behaving at the moment. I am putting on tonnes of trades hoping that my positive trading results will vindicate the effectiveness of my K7 trading strategy. Yet I know I need to do more work on my trade management approach and to review and document my executed trades on a regular basis.
Wrap of yesterday’s rollercoaster session
Yesterday was a bloody rollercoaster ride. Even before 10am I was down 2.7R – took myself to the couch of the local cafe with a hot chocolate and tried to clear my thoughts. After deciding on the way forward, I promptly entered into two more trades (going long both DAX and FTSE) and initially looked as if I was going to be down 4.7R. Luckily I had a price spike on the FTSE go my way to get me to -1.8R. Shortly after I lunch I entered into three trades simultaneously (going long Cable, EURJPY and shorting EURUSD) which brought in another 1.5R of profits. Then I took a “free” trade on EURJPY (I was able to move my stop to entry within a few minutes) but ended up a scratch. Finally at 4:20pm I took an invalid setup on USDJPY to get me back to -1.3R for the final tally.
I gotta step back and look at my trade management approach, review/document my trades (I am behind by more than a dozen) and also want to review the August charts for Cable, DAX and FTSE. I need to stop and sharpen my saw. It’s not the end of the world if I don’t trade for a couple of sessions – I need to realise that.
I feel deep down that this issues exist because I am not convinced that K7 is profitable, and secondly, that I really don’t know how I should manage my trades. I got to gather information that helps me address these issues. Trading with these things on my mind are going to have a detrimental impact on my trading.
So after making 5.8R in the past fortnight, I am down 2.2R for this week (5-3-10)- it’s not so bad. Just keep going mate!