I write this blog to record my trading so I can improve my performance. I was £1600 in profit for the month yesterday and feeling really good about my trading. It's the final day of the month and I should have refrained from trading and enjoyed taking money out of the market.
Instead I decided to go long yesterday before the Fed's announcement, the trend is up and there's a bullish vibe. It was obvious QE was going to stay on the table at this level for the foreseeable future but news moves markets and there was a tiny hint of doubt raised that they could, might bring it forward to December.
Not that the Fed said they would begin tapering in March next year or even suggested they would bring it forward from a date they haven't declared. Still someone reads something into it, traders decide they've had a good run and they don't need much of an excuse to book profit. As they sell prices fall and I find myself on the wrong side of a pullback.
I stayed awake all night and through a combination of 'force open' trades and increased funding keep my position alive. I plot my charts and see support and lo and behold it holds. I close my 'force open' shorts for a few quid and start the rise up.
My funding of the account is £5000 and at 7pm this evening I have managed to bring it back to that from a low of £2500 earlier in the day. At that point I force open shorts to lock in my position and that should have been the end of my trading for the day where I could relax and plot my next move.
I see the price holding and fading ever so slightly, I have my 30 min chart and 5 min chart and there looks to be good support a few points down. After half an hour and little movement I close my force open trades for a £100 profit whereby the index proceeds to drop EIGHTY POINTS in the remaining half an hour. So I type this with my account balance at £3300 instead of a peaceful break even £5000 a mere 60 minutes previously. I played is so well up until that fateful click of the mouse.
This is another opportunity for me to learn, I should have been very happy getting back to break even, if the market went a further 30 points in my favour and I missed out on £700 profit then so what, I had peace of mind.
Next time this opportunity arises that's exactly what I shall do. In the meantime I'm still alive and really nothings changed. The easy money is on the table for now, traders have a new month with new money to play with tomorrow and if I had to pick one direction it would be long. I may have to be a little patient for a few days but if that's the price I have to pay for learning and to make money count me in.
I shall update tomorrow.
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