So what happened by the end of the week? Let’s break it down…
SERCO – Went short and this never got into positive territory, should have closed the trade within the first 3 to4 days of opening it.
Forth Ports – Went really well during the first two days, should have closed it after day 2
Whitbread – Again, very successful initially but went all sorts of wrong until again I failed to pay attention and my stop got taken out. Trade should have been closed early on for profit.
1. 66% of my entries were actually correct in that they did move in the direction I predicted.
2. A number of errors were observed
3. Must focus more on exit strategy
Not so good points
1. Became emotionally attached to not closing the Whitbread trade for a loss
2. Saw all the trades as a group rather than individual trades
3. Failed to take action and analyse mistakes/price movement at the end of every single day
So basically I need to answer the following question for myself. ‘What is an acceptable target or point at which to close the trade in this market?’ Since volatility is high and there’s a great deal of uncertainty is the best policy to take the money and run? Answers on a postcard please!