In a conversation with Tyro Trader, he observed how our respective equity lines are exhibiting signs of a double-top or a potential upside break-out. We would both like the latter.
Personally, I feel that my desire to escape this trading range has been very strong and – cautious about my own short-comings – I realise this ‘desire’ has the potential to be turn in to a destructive ‘need’. I don’t feel like that at present, but I’m aware it could happen.
The last time I was around this level in my equity, I experienced a drawdown of 17%.4 in a single week. This time around, I know a ‘steady as she goes’ approach is best, but I also realise that I could get lost in the heat of the moment and end up chasing losses, taking too much risk, etc. It’s so easy to slip up in this game. So, to help prevent against a calamitous trading performance I have reduced the funds in my trading account to just £1800. If I can hold to my pledge not to top up my account in the month, this means my potential losses for April should be capped at 15%. I am sacrificing some potential upside by trading with such little equity, but these steps should help to enforce a more disciplined trading approach.
Wishing everyone a solid performance in April.