Monthly Archives: August 2007

Blogroll update

Just added a wonderful site to my blogroll. It’s called The Financial Philosopher, and it does what it says on the tin exceedingly well. Highly recommend a visit.

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PS – I’ve deleted Dismally from my blogroll, as David stopped posting on the site when he fell ill and it hasn’t been updated since. I hope he is well.

August trading results

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The life of the undercapitalised trader is fast dawning on me.

Assuming I continue to break-even trading, and based on known general expenditures averaging around £400 a month, I will reach my cut-off point of £9000 in around six-months. In reality, I will also get hit by unknown expenses, so lets reduce that to four months. It isn’t very much time and yet I do not feel any anxiety. I believe I have given it and am giving it a fair shot. And, to end on a positive note, it ain’t over yet!

Week 43 FX trading results

Trading: 0%.

Behavioural road-map score: 9 out of 10.

Again, no trading in these choppy waters. Importantly, while I spent some time looking at the markets, I felt no compulsion to trade. My rationality appears to be somewhat cyclical so I doubt it will last; the trick is to be ready for the turn.

Monthly stats to follow.

Week 42 FX trading results

Trading: -2.5%.

Behavioural road-map score: 7 out of 10.

I didnt’ trade this week but general expenses continue to drag down my performance.

Indeed, while the recent p+l negative prints in recent weeks make this look like my darkest period, this is not really the case as my equity is being pulled lower by expenses rather than consistently poor trading results. Such is the life of a woefully undercapitalised trader.

I have altered my risk/return profile hoping to generate larger, lumpier returns at the expense of smaller week-in-week-out profits. It will take a few months to see if this approach is more rewarding.

Wishing all traders navigation through these tumultuous water.

Mrs Brown teaches trading

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‘To have achieved one’s ambitions, or to reconcile onself to one’s limits, it is a life’s work.’

‘However many doors you lock, someone will always get in.’

– Benjamin Disraeli

Week 41 trading results

Trading: flat (after paying for car insurance and various other expenses).

Behavioural road-map score: 7 out of 10.

Last week, I entered into a highly risky, long equity position. This was not a wise move and I reduced this to a more manageable stake shortly after. At the end of the week, my currency trading losses had been offset by some extremely astute buying of equities on the dips (sentence to be read as a joke about hindsight).

Quick thought: False positives in the market

The ups and downs of the market give everyone the opportunity of appearing intelligent, if only for a while.