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Well…. This week I’ve made some discoveries… we all know that the public enemy #1 when it comes to trading is ourselves…..
This week has been hard, VERY hard… I’ve discovered public enemy #1 for my strategy….. SPIKES!
They may be best friends to some people but to me,,, I’ve discovered that they are my worst enemy.
Well, this week there have been 4 trades, 1 of which was a NZD short, which paid a VERY small win, 12 pips… the other 3, well let’s just say on all 3 trades, spikes hit mid-trade and I managed to get out of them loosing just 46 pips… if I hadn’t seen the spike it would have been a 75 pip loss, so every cloud has a silver lining and I’ve really seen how spikes affect my strategy in a negative way.
A small price to pay for yet another valuable lesson.
It also brings home the fact that fundamental analysis is important, even for the technical trader, even if it means just being aware of the main announcement times and the effect the announcements are likely to have…
It’s been a nerving month so far as it’s the first time I’ve traded throughout the holiday season, but at the same time I’m developing personally as a result… I’ve fought and conquered various personal obstacles this month already such as the urge to experiment when things seem a bit too quiet on the trading front – that appetite for the buzz you get from the trading bug, watching a trade crash and sticking with the strategy and staying consistent, trading without hesitation despite how the month has gone so far…. It’s been hard but rewarding psychologically.
If I was to go back into my mind 1-2 years ago, I couldn’t have imagined having the mental attitude I have now.
I may be 2.97% down so far but the month is young… and in light of the above I’m glad I’m trading it, for better or for worse… and let’s face it 2.97% for a lesson, it’s far less expensive than the 75% lesson I paid for in September when I started trading my micro account….
It’s all about the Income and Expenditure…. This week has been expenditure…..
That’s it for now but I’ll be back next week.