My Up and Down Week
November 16, 2007 by Trader Rich
This was an up and down week for me, one in which I ended pretty much breakeven, my account balance down -.003%. I had some decent trades today that helped but as always, I exited too early. How do I know I exited too early? I had my targets set but around noon today, I got a little jittery and closed my positions before they reached them. Once again, if I would have trusted my initial thinking when I placed the targets, these trades would have turned out much sweeter. This has always been a problem I've had. I have to learn to trust my initial thoughts before the trade because this is when my thinking is the least clouded by fear, greed, and general second guessing.
I have to be more patient going forward also. I tried to look at too many currency pairs this week and wound up trading 3 different pairs. I was getting a bit impatient waiting for action on my primary pair so I started looked elsewhere. Not a good idea. I always concentrate on the GBP/USD and this will remain my pair of choice but I will cut out the rest next week except one other, the USD/CAD.
Since I started trading again in the beginning of the month, I've concentrated on improving the following aspects of my trading:
- POSITION SIZING
- TRADING WITH THE TREND
- SCALING IN AND SCALING OUT OF POSITIONS
- LEARNING A NEW SYSTEM WITH A BIT OF DISCRETION
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I’m guilty of exiting positions too early as well at times, like yesterday for example when I exited my short position in cable from 2.0410 at 2.0380 even though I believed there was more points available. It happens to the best of us.
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Rick,
If you had just stuck with trading the GBPUSD and nothing else, you would have been up 293 pips for the month so far. I think the real secret is finding one pair you like and trade it. I personally trade the GBPJPY. And that’s it. I don’t care what all the other pairs are doing. I know the GBPJPY like the back of my hand and I can pull in 200-500 pips a day, just trading 1 pair. Stay focused and you will do exceptionally well. And as far as the pip totals that I mentioned, I believe in consistency way more than quantity. If you can pull in 20-30 pips a day, every day, you can become a millionaire within 2 years. It really is just that easy..
Jay