Week 24 FX trading results

Just as my trading activities are moving off the front burner, I have my first week of solid trading. Still, it’s better late then never.

Regular readers will know of my ongoing struggle to adhere to my behavioural road map. I don’t know whether taking a week off gave me better perspective, but for the first time since I started this blog, I have managed to exercise a decent level of discipline. I’ve had the odd good day before, but I’ve never scored above 8 out of 10, and thus I have never rewarded myself for a good performance. This week, I am giving myself a score of 9.5 out of 10 for following the road map.  It feels good to get that monkey off my back … finally. Also, now that I know it can be done, lets see if I can produce repeat performances in the weeks ahead.

Did this exercise of discipline manifest itself in the form of super-sized profits? Not quite. This week, I made a net gain of a few hundred pounds, equating to equity growth of just 1.7%. However, I believe it is important to draw a line of distinction between one’s trading results in a given week, and one’s behavioural performance. A trader’s behavioural performance is determined by their own discipline; there is no role for the agent of chance. Thus, this aspect of trading can be honed and practised every minute of the day. Trading results, however, are susceptible to vagaries of the market. A trading strategy has to be profitable over the long run, but one cannot evaluate their approach on too short a time horizon. This would be unfair to the approach and to the trader. So, when it comes to making my weekly assessments, my actual trading results are of secondary importance compared to how well I have followed my behavioural road-map, even though this is a subjective judgement. 

This week, I’ll be treating myself to a trip to London, a round of golf and a nice meal, despite the low profits. Indeed, after paying the bill for my car tax, my profits will have vanished. However, even if I had produced a loss this week, I would still have given myself a 9.5 out of 10, and so my expenditure would have been the same.

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