Behavioural road-map score: 7 out of 10.
Another week with no trades and no profit. At least limited expenses have kept my equity line broadly flat.
I’ve been struggling (though getting better) at trading over the last 5 years.
After reading Brett Steenbargers columns – where I found a link to you, and looking back over all of your previous weekly entries, one issue seems to stand out as a possible reason for your lack of increasing success.
The answer being; the type of instruments you trade.
By your own admission you are an experienced currency trader. Also, by your own admission, currencies are/can be very volatile.
Maybe you could look at trading (slightly) less volatile instruments like indices with lower risk while you regain your edge and retrain your systems?
Its only a suggestion.
Thanks for reading my blog Garuda, and for the suggestion.
For the time being I will probably stick with what I know. I am familiar and relatively comfortable with the volatility in the FX majors and do not currently have the resources to spread my wings to other products.
I feel that the volatility of the underlying is one aspect of risk and that the overall volatility of one’s equity is perhaps more important – this relates not only to the riskiness of the underlying but also to leverage employed, total position size as a percentage of one’s portfolio, stops, slippage etc. My approach is one of changing the riskiness of each trade (as a % of the portfolio) as my results change and this seems to be serving me reasonably well (so far). Nevertheless, thanks for the suggestion. It is always important to think such things through.
Fill in your details below or click an icon to log in:
You are commenting using your WordPress.com account. ( Log Out / Change )
You are commenting using your Twitter account. ( Log Out / Change )
You are commenting using your Facebook account. ( Log Out / Change )
You are commenting using your Google+ account. ( Log Out / Change )
Connecting to %s
Notify me of new comments via email.