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The Weekly Wrap - Live day trading results - Week ending 10th March, 2012

Welcome to the first official weekly wrap post for 2012.

For those that missed last weeks post, the weekly wrap is all about showing you my actual live trading results for the week in an attempt to show you what it looks like for a full time private trader to day trade the Asian Forex session.

You will see some fancy graphs to the right, mountains are good, valleys are bad. Below you will find some charts from the week as the trade happened, I can’t document them all in one post, but I will ensure both sides are represented.

For now, until I convince the wife otherwise, all dollar amounts will be excluded. In all honesty, the amounts are irrelevant anyhow. Just know this is a full time gig, I live in a first world country (for now), and my wife, like all wives, likes shiny things.

I will share my percentage returns. To make that relevant, let’s make it clear I trade with a 2% risk threshold unless otherwise noted. This should give you a good idea on the Risk vs Reward relationship.

Enough waffle, let’s get to it:

Weekly summary

Result: +9.10%

The best way to sum up the week is profitable, but draining.

This week saw a lot of news on the AUDUSD through the Asian session as well as some news out of China which can toss the pair around at times. This meant a lot of closed trades before news to protect the account resulting in the highest winning percentage trade of +3.6% (only a 1:1.5 risk/reward).

The week was one where I fought myself as much as the markets, especially later in the week where I seemed intent on doing my best to undo the good work from earlier in the week. I needed a stern talking to and a sedative by the end of it all.

Trading for me is more of an internal battle than an external one. Emotive urges, tiredness and stress are my greatest enemy, especially as a day trader.

I have three rules of day trading:

  1. With the trend
  2. Close before news
  3. Protect your money!

Without sticking to those rules, this week could have been a dangerous one for the account balance with so much news in my trading window. Instead it was a hard, but decent week.

Loss of the week

I had 4 losing trades this week, which you can see the details in the full trade run down below, but there is one trade that sticks out like a straight guy at mardi-gras.

Thursday afternoon saw me sell the AUDUSD at just above 1.06 with a stop 4 time larger than normal (but thankfully, a quarter of the normal trade size).

Not only was this 2 hours after my self imposed close of play, against the 5M trend, and with a stop inappropriate for that time frame, but it was in reaction to a morning opinion piece I had written earlier that morning.

That’s right, I traded my own propoganda! How’s that for self sabotage. I had even marked pivotal resistance, of which had been broken, yet I still went short, silly duffer.

The other thing you will notice of that trade is how long it took to close compared to most I took. It took 4 hours hanging around to lose 1% at a time I shouldn’t have even been trading.

My only saving grace was sticking to my stops, so damage was limited. But that baby needed to be closed earlier. You can see where I entered by looking at the below end of session chart from that post:

Gain of the week

You would think looking at the below trade list I would pick one of the 3%+ trades, but not this week. The gain of the week was this trade:

I bought the AUDUSD just after the open of Tokyo on a polarity play on Wednesday. I got a nice initial move from those levels, but had a news warning on my desk of Australian GDP figures being released at 11:30am.

I closed 2 minutes before the news came out as per my golden rule, and 1 minute after the floor dropped out of the pair for a 50 pip move against me in the next 10 minutes.

It may have not been my most profitable trade this week, but I stuck to my rule of closing before major news, so it was one of my most satisfying.

Full trade list

Finally, here is the full run down of all trades taken on my live account this week. All times are GMT+11 (Sydney, Australia).

Total trades: 15
Winners: 6
Losers: 4
Break even: 5

Average time per winning trade: 2.4hrs
Average time per losing trade: 1.88hrs

Personal statistics are calculated as follows: A winner is a trade that gains 1% or more. A loser is a trade that loses 0.5% or more. All other trades are determined break even.

Happy trading.