STOP! Somethin’ is wrong here..
Though I thought of writing this in my monthly review later, I just can’t help thinking of the cause/reason of my mediocre March performance. OK, I am not losing any penny, instead, I am just having a FLAT month with a whopping 0.9 R profit to date. The months-long flu and cough and chopfest of stock index futures after the big sell off might be part of the reasons, but I am not using these as execuse.
Here are what I did this month.
I started a new strategy which is more like a scalping strategy. After flipping through charts after charts after charts, I decided to jump in with some real money. Well, things were not as rosy as I had thought. I hit problems like spread, confidence, order execution speed etc. I stopped this after I started feeling uncomfortable.
Secondly, instead of focusing on NQ only, I started expanding my trading basket to ER2 and ZG. This move was fine, but it was just too fast. I jumped into two instruments that I had never/rarely traded. So, the movement, speed, spread and risk level scared me a little. I lost confidence for a while. I have stopped this monkey act immediately and taken out ER2 and ZG immediately. Now I again focus on NQ.
Third, I am timid. When I am facing the situation that the risk required for a trade is far below my R, I hesitate to increase my positiong size. So, even though the trade painted out a nice picture in the end, my equity growth is still mediocre.
Solution? I don’t have it all now. The only ’emergency action’ I am taking now is focusing on One product One stup again. And I need to push myself to increase position size when opportunity comes.
OK. Now go back to trade.