Another week has come to an end – the 6th trading week of 2016. This week I traded/worked less because I had my teenage nephew visiting me from Germany. Consequently I traded only the London sessions on Tue and Wed, and then both London and New York sessions on Thursday.
I am settling into a good routine. I trade the three middle days of each week and try to execute around 25 trades. On Mondays and Fridays I review the trades I took and try to learn from them, avoiding mistakes that I made, and picking up on new insights that I find.
In the subsequent trading sessions I try to implement the refinements, and the weekly cycle starts from anew. In a way similar to the process of continuous improvement in other types of businesses.
Things I did well this week (keep doing these things):
- Visualizations prior to each trading session
- 1H chart reviews to formulate preferred direction to trade, to identify potential support and resistance areas, and consequently set price alerts on FXCM for these levels
- Actually using these levels in assessing potential setups and in target setting
- Reviewing news and paying attention to the squawk throughout the session
- Listening to relaxing throughout the session
- Maintaining high level of concentration and minimizing distractions (e.g. internet surfing, blogging, reading trading forums)
- Good efforts at implementing further setup parameters and trade management tactics established during analysis/review sessions on Friday and Monday such as trailing stops as planned and not closing trades prematurely.
- Good efforts at working on “expectancy” mindset, and paying less attention to running daily P&L – focused on taking a certain number of setups
- Got 94% in terms of taking valid setups – 16/17 trades
- Consistency in position sizing – using 1R risk for every trade throughout the week
- Consistent and prompt documentation of working day and completed trades
- (Sometimes) my mental state was more relaxed whilst managing a position
All in all, I was again happy with my efforts and concentration. I feel like I am doing the right things.
Things that I didn’t do well and/or that I didn’t enjoy (do less or none of these things):
- Moments of tense pressure when open positions were showing losses – why is there still this intense pressure at times? Is it because of the significant role that trading plays in my life?
- Entering into a long EURGBP position without being adequately prepared at the onset of Thursday’s New York session – this happened because I got back to the office at 12:55 rather than 12:40
- Making the odd position size calculation here and there and ending up with a slightly different volume/position size risk than anticipated – this occurred because I skipped the position size calculation step
- I think I am looking for a black & white answer as far as stop management is concerned – some rules that will govern all types of trade scenarios – where I stay in for all the setups that
work whilst I manage to minimize my losses for the setups that don’t work – is this wishful thinking? It’s quite possible that there isn’t a black & white answer!
It was another profitable week – again a small one – but better small profits than losses right? My financial value of R increased from £200 to £225 this week. I aim to increase it by a further £25 next week. Thus the average trade size was £228 risk/trade (up from £166 last week).
Bizarrely I did not have a single scratch trade this week. Each trade was either a loser or a winner – 7 winners and 10 losers. However on average the winners were bigger than the losers, hence the overall gain for the week.
All right, let’s see whether I continue trading competently in Week#7.
Good luck to anyone else out there trading, especially Mr France!