“Clean up trading room 3 please, clean up trading room 3”.
Spew, buckets, more spew and trading.
That pretty much summarises my day trading results. Should make for an interesting weekly review.
This week was a lesson in moderation, both on the dinner plate, and in the trading account, and despite a reduced trade count, there were plenty of lessons to be learnt.
Day trading results: +5.65%
I still don’t know when I ate those little pieces of carrot, but evidently I did, as I found out Sunday night after a stomach bug hit the household. Ah 1 year olds, always sharing.
This meant trading was reduced this week, as it hit myself and the rest of the house, so the weekly wrap may need a little less Glad Wrap than usual.
I’m sure there was news, and rumours of news, and more rumours of news of rumours, but I didn’t care this week. With limited faculties, I had the attention span of a …. ooh look a kangaroo … what was I saying?
When this happens, there is only two (responsible) ways to go.
You either step aside from the markets, and catch up to it next week, or you recover enough to only trade your tried and tested methods.
I have two ways I trade, one is completely objective, with a tried and true, heavily back tested, cuddles me at night, type of system. The other is with strict risk controls, but essentially “winging it”. I chose the cuddles.
My days of trading were everywhere as well. No trading Monday or Thursday, and a rare delve into the European session on Friday instead of Asia to allow me to look after the sick young ones during the day.
Loss of the week
Ok I am going to cheat a little here, I did have a couple of losses this week of course, but I am not going to choose them.
They were stock standard, stick to your stop, take a loss kind of trades, hooray for me. Instead I am going to pick a small +0.6% trade from Friday’s European session.
You’ll see why.
Below is a short trade I took just before the London open.
Price was in a down trend as defined by the two line method, and I was short after a push down, selling to previous buyers at 1.0530. All good so far.
The trade was starting to work when one hell of a storm passed through, knocking out the power, and hence the home wireless network, and of course my connection to the trade.
So why is this something to be proud of?
One, because I took the time last year to ensure I have redundancies for such situations, and two, because I stuck to my policy of closing the trade and resetting.
Not only did the power go, but so did a separate back up wireless dongle, and it took the trusty smart phone to get out of the trade.
Of course this should never be the last layer of backup, beyond that should be the broker number (as tweeted by @IQMSUpdate) and the most important, a stop loss. That’s 5 layers of redundancy, it should be enough.
So why place this in the loser of the week?, because straight after the trade flipped and worked to it’s target. It doesn’t matter though, I kept to my rules, next time it might be the other way around.
Gain of the week
The gain of the week, was the last trade of the week, which I promised Hugh of Trading Heroes that I would not take after doing his upcoming podcast (sorry Hugh), so skewers in the eyes for me.
Remember that trend line from the loss of the week above?, well it broke, and a new up trend line could be drawn as shown below. A great buying opportunity came when we retrurned to the backside of that downtrend line in a developing uptrend.
I bought, the market coiled for an hour, and then sprang to life for it’s last move of the week in this pair.
It made a modestly profitable week that little bit juicer. Added a little gravy let’s say. Being so late, and not wanting to ruin a turbulent week, this was a reduced size trade, risking only 0.5%.
The methodology is classic technical analysis you can read about it in any book. These methods work, but not all the time, they need the right context.
In this case, a quiet market storing energy, a big Thursday recovery from lows, and a new trend line in the development of that recovery made it a good trade.
Full trade list
Total trades: 7
Break even: 1
Average time per winning trade: 2.2 hours
Average time per losing trade: 37 minutes
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.
Subscribe to Adam Jowett (.com)
Get the latest posts delivered right to your inbox, spam free.