Week's Loss £450
I wrote in my weekly preview that less is more. I also wrote in the middle of the week that I'd worked too hard to let one trade go against me yet I allowed just that to happen.
In the end a loss of £450 is manageable and I view it as an occupational hazard, I will make losing trades and I'll have losing days BUT it's vital to ensure I'm still in the game with a healthy trading pot for the next day. I achieved that and in one way I'm pleased I was able to close out and limit further potential downside.
My weeks performance
I got into trouble on one trade and it's the first time in weeks I've taken a position based on a feeling rather than on what the candles dictate and I was punished, thanks market for the reminder. it just shows how important emotion is when trading. I was impatient (reminder to self: less is more) and I paid the price, thankfully with a mere flesh wound and nothing fatal.
The flip side is that having got myself into a losing position I took the bull by the horns and had a spectacular day's scalping, £2400. I simply pulled the trigger when I saw a set up and was rewarded with a string of successful scalps.
I called for a Dow trading range of 15900-16250, I was too optimistic. I have had my eye on 15750 for a while and called it a week ago as the bottom of the market, last weeks low of 15700 opens the possibility of 15600. This is a difficult week to call as everything hinges on Wednesday's Fed decision so I expect pretty much a sideways movement until then, more on that tomorrow.
Thanks for your comments, this week I'd like to thank Andytrader for some good advice. I didn't agree with it at the time (or maybe I should say my ego didn't!) but as I let it digest I couldn't help but see the logic and common sense in it. I do see this market going much higher and I was tempted to let the trade run (even at £50 point my account can survive a fluctuation of 100 points without threatening my margin) but it is nice to sleep at night without the fear that it may drop a further 100 points (it's easily possible when the panic sets in) before retracing.
Comments section
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'till tomorrow's weekly preview.
Wow, Im sure Friday was an emotional roller coaster. Im pretty sure most people would have crumbled and closed trades every time they went into the red - there by losing their account! Much respect for you're gonades! Lol. On a serious note, I'm sure that you were really pushing your luck to try and make the money back so now you're feeling invincible... your not, pleeeaaase remember you are definitely not! You made much more than you normally would but the losses could proportionally increase on a bad trade (I'll let you calculate how much). My advice would be to trade half size until next year, don't ruin your Christmas. Let your emotions fade over the holiday, trade like a robot! Hope this helps, and have a great Christmas. :-)
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