March 2007 trading results

I Want To Break Free

My account grew by 10% this month, and if I step back and look at the bigger picture I should be satisfied with my performance: 17 out of 21 positive weeks, with an average after-expenses profit of just over £400 a week. But comfortable I am not. I feel as if my trading performance is trapped in a range – see the shaded area in the chart – and this is producing a sense of unease. 

In the month ahead I just want to stick to my game plan, roll the dice and let them land as they may. I know the barrier may be a fiction of my own making, but if I can take my account to £14,000 I feel this would be a significant achievement because it would transform the break-even target (£18,000) from a dot on the landscape to a realistically achievable goal.

However, just as happiness is often attained by an indirect route, so I believe trading success can only be achieved if I focus on the process and not the prize.

6 responses to “March 2007 trading results

  1. Nice to see your progress. If I remember correctly this curve reflects also taking money out of the account? If that’s the case then wouldn’t the graph paint a different picture in terms of pure trading performance?

  2. Hi Eyal. That’s exactly right amigo. The figures and the curve are reported after money is taken out for general living costs. If I only reported pure trading performance I would be up around 45% over the two years, but to me that is just a number in the air. I figured that if professional funds usually report performance after costs, usually taking out 1% to 2% a year to cover costs and salaries etc, then I should do the same. I get the feeling some other blogger’s don’t do this, but I suppose what’s important is that each of us reports on the number that is most relevant to the individual.

    Of course, when one’s capital is so low, even covering basic costs can end up easily eating 50% of profits, perhaps more. In an effort to keep my costs as low as possible, I’m pretty much living the life of a hobo trader, but it isn’t easy.

  3. Well done Caravaggio,
    (I believe trading success can only be achieved if I focus on the process and not the prize.)
    In your own words you described what trading is all about plan a trade and trade your plan by focussing on the process you take the emotions of
    fear and gread out of the equation.

  4. Thanks forexharry. Personally, I don’t necessarily believe in the fear/greed cycle per se. Also, while I view greed as an outright negative, fear is something that I couldn’t live without. In the right dosage, it keeps me on my toes.

  5. Caravaggio, I see what you mean. I would probably add the a graph for just trading results because I think you can glean different type of information from it. Rather than just see how your equity (££) is doing you can also see how consistent your progress is, how deep drawdowns are, how well the system is holding up in the current market, whether you’re experiencing some plateau etc. But overall well done indeed, I’m sure lots of people would give an arm for that kind of nice upward curve.

  6. You are right Eyal. Before I decimated my account I kept a log of pure trading results and it was insightful. It makes sense to get back to proper record keeping; I’ll do this if I get back to break even. Right now, it’s still a little too depressing to see the trading approach making money but my balance going down because of expenses!

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