Yes, it’s been more than a month since I placed any trades = FACT! 🙂
In some ways this serves to make the point from the earlier (much earlier) video post that I’ve not got a great deal of time in which to actually trade and this blog will only detail trades I’ve made.
If I’m to trade with any confidence I like to have developed some ‘connection‘ to the market and this is ridiculously difficult if you’re actually working 50+ hours per week in a completely non-trading related job.
However on Sunday the ‘DOWNGRADE’ (cue dramatic music) of the UK was able to penetrate even my tired brain so along with the rest of the FX community I wondered what would happen to the good ‘ole pound on Sunday at 22:00. We were not disappointed.
So on this basis I was looking to go long for the close of the gap which is basically a play on the liquidity available in a given direction following a sharp spike down. Booyah!
So I got in just above the lower red line and the upper line was nominally my target.
The eagle eyed among you will note that I closed everything about half way between the two points but I’ll come back to that at the end of this post in what will be famously known as NOTE 1
Here’s a slightly more interesting view with annotation from an M1 chart
Now this is all well and good but at the same time I also made an error… Due to having the attention span of a drunk monkey with ADHD I saw something on twitter about a huge gap up in USDJPY which got me all excited. Rather than having a trade idea (as I did with GBP) all I had here was optimism and spangles. What I also managed to do was put my fat monkey finger on the ‘at market’ button while messing with stops/limit settings.
I ended up with this…
There are so many reasons why this was a bad idea that I can’t list them all here… apart from the fact that my clumsiness got me into it in the first place. I could have had a bit more subjectivity and moved my stops then been ‘saved’ later in the morning but after grinding this out for an hour I felt that discretion was the better part of valour.
What I have rather grandly referred to as Note 1 goes as follows…
Retail traders with very small accounts (of which I most definitely am one) are overwhelmingly disadvantaged by the ridiculously awful psychology associated with having no goddamn money.
There, I’ve said it out loud.
Let’s combine this fact with the other monstrous problem which is that new traders lose. You don’t know what you’re doing and are compromised (massively) by the fact that the money you have is actually important on a relative basis.
Is this anywhere near optimal? No it’s not.
To butcher a quote ‘we hold these truths to be self evident’ so the solution (having looked squarely at the problem) is to change things which means another mad work day tomorrow.
Cheers for sticking with me on this people. I’m still having fun and maybe I’m actually improving.