TraderGav.com

Gav's trading blog - Perseverance, Consistency, Confidence

Rant

Away for a week

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I am traveling to northern?Malaysia next week. So I won’t be trading for the whole week. I am trying to get a copy of ‘Trading in the zone’ before I leave, not sure if it is available in the local bookstore.

Anyway, This is gonna be another quest of great food

?

Postmortem 19-Oct-2006

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Dear diary,

A quick and short one. I did not make any trade. The market movement today was not my liking. Well, is this because of option expiration? No idea.

I was tempted to scalp here and there, but, I did not, I was not ready. Now market is closed. The feeling of not losing money is pretty good as well. 😉

I am taking a day off tomorrow. Option expiration Friday? Not sure what is the implication on index futures. I will spend some time to study instead of trading.

Be a better trader.

Stop and look back

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I have not completed my 100 trades of dummy trading, so it is still too early to do statistical analysis. But i think it is appropriate to review my progress and decide my next step. I had bad days since end of August. Looking at the performance chart since 01-August-2006 to 18-Oct-2006, ugly?, I think so. my accumulated R has been dropping.
Overall, system expectancy fell to 0.09 and accuracy is around 45%. But then , it is still too early to analyze these figures.

[photopress:dummy_trading_performance.jpg,full,pp_image]

After reviewing the result I have identify some problems:

  • Personal problems during September had created some troubles to my life as well as my trading

  • Lack of discipline. There were times, I was anxious to trade, and breaking rules.

  • Dummy entry is not only about reversal up/bar and inside bar. Market trend and intraday market tone are important prerequisites. I did not do enough for this part.

  • Trying out multiple positions concurrently. Obviously, I am not good enough at this, yet.

  • Without a profit target for each trade. Basically, I did not know where to exit the position in order to protect profit. For many instances in my life, I do not do well when I do not have a target. This problem appears in my trading now.

Here are steps I have taken to improve.

  • I have reduced my risk level from from maximum 1.25% to 0.76%. So now I am more careful and particular in choosing real low risk dummy entry.

  • Maximum 2 opened positions concurrently.

  • Learn to be really patient. It is absolutely fine to sit with cash if there is no low risk entry.

  • Setting minimum profit target for each trade. I am using Fib extension levels to determine exit point now.

It seems like I am such a big dummy fan huh. Well, I believe in controling risk. As long as I keep my risk exposure in check, walking through the bad days, I will be the last one to laugh. Dummy spot just suits my risk appetitie so well. I will start exploring more strategies when I have achieved consistency in my trading performance.

Be a better trader.

Wallstrip – 18-Oct-2006 ADOBE

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Not publicising for wallstrip.com, because they are already well known enough.
Check out this video clip for 18-Oct-2006, ADOBE. The funniest ever.
The wallstriper has done a good job. It is my daily reading blog.

Postmortem 18-Oct-2006

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Dear diary

After watching pre market of Dow futures,  I thought I would have made some trades today.Well, at the end of the day, I did not make any trade. There was no low risk dummy set up.

Just how limited is my trading toolbox. I basically did not know how to trade under this kinda situation. Gap up, down, filled gap, then up. Well, “Don’t know what to do? then don’t do”.

I guess there should be a lot of actions in stocks trading. I am going to check out blogs in my blogrolls now.

Be a better trader.