21/1 – Week#3 Trading Wrap-Up

Another winning week.  That said, I continue to find trading tremendously difficult!

You have to analyse the market technically, understand its structure, beware of fundamentals. You have to be disciplined with your setups, your position management, your exiting and your trading rules. You need to stick to your money management properly and you have to stay fit and healthy in order to concentrate.  And, on top of that, you have to overcome your emotions and psychological issues whilst trading.

Surely there are easier jobs in the world.  I guess that’s why the success rate for retail traders is rather low.

This morning was classic.  I got myself into a pretty negative state with some losing trades and some missed setups.  My frustrations grew quite intense.  I left the office the office at 10.30am to head to the gym to let out my frustrations.

Came back and traded very defensively once Draghi had stopped speaking at the ECB press conference.    Started with a scratch and tightened stops really aggressively.  Then hit winners on AUDUSD, EURGBP, USDJPY and finally the SPX.  I more than made up for the losses incurred in the morning session.

The stats for this week were 10-6-11, for a net gain of 1.09R, or £218.  I increased the position sizes for Cable and SPX to £225/trade since I have been hitting good results with those.  And I reduced the size to £50/trade for EURUSD and Oil since those have been rather dire.  Ironically I didn’t trade well on Cable or the SPX this week, so I shot myself in the foot a bit!  In fact, only Cable I hit 4 losers with no winners!!  Maybe the fact I am risking more increases my likelihood of losing?

My average risk per trade for the week bumped up to £146/trade (from £86 last week).

Week3

Results aside, how did I trade?

Again, I traded pretty well most of the week – kept up with visualizations, preparations, trade documentation, planning, position sizing.  But I feel I could do better.  Here are some specific things to look at:

  • A couple of times my position management was off.  Twice this happened in trading USDJPY.  It would serve me better to only take completed candles into account when deciding to close a trade.
  • It often feels I get into messy looking situations while at the same time I miss some of the “obvious setups”.
  • Should assign a higher weighting to the trends on 1H and 4H timeframes.
  • Need to pay more attention to support/resistance lines.
  • Need to work on not losing my head when I am in a position.  Need to think straight!

From a bigger point of view, I need to introduce reversal setups into my trading arsenal. I believe that this will complement my existing trading style.  So, all in all, a bit of a mix really!!

 

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