As I was waiting for the FOMC rate decision, I completed the documentation and analysis of the trades I did today. All my trades were on DAX (the German stockmarket index) and USDJPY as I was focusing on these today. Both of these instruments tend to move up and down throughout the day a lot lately (i.e. they have high volatility).
Below is a slideshow of the trades I took, along with some commentary – the objective is partly to illustrate how i am attempting to be more fluid in my trading. It also helps me track how I change my analysis of charts as time passes. (I do actually document every single trade that I take).
Am also trying to incorporate some of the material from ‘Das grosse Buch der Marktechnik’ (Michael Voigt) – which is very helpful in understanding the trend context, which in turn helps me in target setting (and thus go for bigger winners!). Thanks Bram, a Dutch military veteran (from the Veteran Trader Project) for lending me this German text!
Staying in the trades continues to be a challenge for me.
A few words on win rate and reward-risk ratio….
This week thus far I am down 1.17R – that’s from 14 losses/scratch trades and all of 3 winners. The average winner was 1.06R, the average loss/scratch was -0.31R. This is NOT the type of distribution of results that I would like to have.
Many traders would be able to appreciate that a 18% win rate with a Reward-Risk Ratio of 3.4 is psychologically rather difficult. Not staying in the winning trades for longer, or much more often, getting out of trades for a small losses and missing out on decent winners, is costing me a lot. This issue is nothing new – you can find it talked about in most trading books. Let your winners run and cut your losses short – I’d like to toss a tonne of four letters word in that direction LOL.
All right, 6 minutes to the Fed….