Archive for December, 2009

Greetings


I just thought I’d make a little post to make people aware of the poll I’ve added and to the blog subscription option I’ve added. I hope everyone is enjoying their Holiday break. I’ve been incredibly ill the last few days and I’m only glad it’s not taking time away from my trading. I wouldn’t wish how I feel on my worst enemy!! 

David Hoyles has made his introduction on the cash-master blog and testing will commence on the 4th January 2010 onwards.

Hopefully if enough readers vote, we’ll all be able to see where the general weakness of traders lies and hopefully we can work together to improve these weaknesses. Anyway, I best cut it short here as I feel a bout of nausea coming on… Have a good New Year..

John

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Explosive end


Wow, wow, wow! What a finish to the year. Today has been exceptional and I’m all done for the year now. TUFXP has been in stunning form the last week or so and I totally didn’t do it justice yesterday. There were two EURJPY trades open and I entered late and adjusted my profit target by an extra 5 pips. What happens next? It passes the original scalp target and misses mine by 1.1 pips. I didn’t even have a chance to move my stop-loss to breakeven as I left the trades running after I’d finished for the day. So instead of a +50 result I was -50! A massive 100 pips difference. I broke my own rules of chasing the market and being greedy by going for extra pips and I should of stuck to my game plan. So a disappointing result yesterday but boy oh boy has it been put behind me today.

There was a false breakout on my strategy on GU but it quickly became apparent it was likely to break to the long side also. I decided to enter early and managed to turn a normal 30 pip win into a 60 pip win. The London open at 8:00 AM was superb and sent GU flying. I also had a TUFXP win using one of my strategies and it scalped easily. Some people are adverse to opening several positions in one direction but as long as sufficient money management is used, I will always follow my instincts and any potential trade that becomes available.

The guy who’ll be testing my e-book methods has been in touch and he’ll be blogging all results as of January as we both agree, it would be crazy and unprofessional to start any attempt at breakouts from next week onwards until the New Year. I’ll be back trading as of January 4th 2010. You can find out all about my e-book here and this is where all results will be recorded. There’s been much discussion on Forexfactory regarding how I was ‘harvesting’ for customers when in fact I never once made a pitch for sales or even mentioned I had an e-book. People are accusing me of selling something that is freely available when they haven’t even looked at the depth of it or the actual methods. It’s highly annoying but I’ll leave them to it and let the test results speak for themselves. I was planning on making an end of year post today but I think I’ll save that for over the weekend.

Once again, thanks for reading and Happy Christmas.

Time


The last couple of days have been extraordinarily hard with cable whipsawing like crazy, a 20 pip move down is followed by a 20 pip move up and it’s incredibly frustrating when this happens. I think Christmas syndrome has set in and this will definitely be my last week until the New Year as trading right now is pretty insane. GBPUSD appears to be stuck solid in a fairly tight range also, usually when this happens, an explosion will occur in either direction but I have zero confidence in trading cable right now and when that happens, it’s wise to just let it go and wait for better opportunities and for the Christmas period to end. Being able to escape with some profit is satisfying and a nice way to end the year.

I want to do an end of year review sometime this week which is something I’ve always done as it gives me a chance to reflect on achievements/failures and all things related. To say it’s been a topsy-turvy year would be an understatement and I can’t wait to start a fresh year with new goals.

I hope everyone has an enjoyable Christmas and New Year and I look forward to continuing my blog well into next year, if you’ve been a reader at any point, thanks for reading as knowing that I am babbling away to someone is a major help. Look out for my end of year review and also the start of my e-book review on Cash-master come the New Year.

Best of luck..

Banned!


So it appears I’m now banned from posting on Forexfactory as I’m classed as a trader selling a product and despite me not actively seeking buyers there, they still don’t allow any posting. I throughly enjoyed posting on FF and it’s a real shame that I can no longer post there.

Anyway, no point crying over split milk so I thought I’d make my post about trading psychology and the effect of being smart has on trading. I did have a well thought out post but I recently read a very interesting post on FF from an interview. Here’s a snippet of the interview:

Taken From:
THE NEW MARKET WIZARDS (CONVERSATIONS WITH AMERICA’S TOP TRADERS)
By: JACK D. SCHWAGER
.

Interview with Victor Sperandeo:

Schwager – “You almost seem to be implying that intelligence is an impediment to successful trading. How would you explain that?”

Sperandeo – “Assume that you’re a brilliant student who graduates Harvard summa cum laude. You get a job with a top investment house, and within one year, they hand you a $5 million portfolio to manage. What would you believe about yourself? Most likely, you would assume that you’re very bright and do everything right. Now, assume you find yourself in a situation where the market is going against your position. What is your reaction likely to be? “I’m right.” Why? Because everything you’ve done in life is right. You’ll tend to place your IQ above the market action.

To be a successful trader, you have to be able to admit mistakes. People who are very bright don’t make very many mistakes. In a sense, they generally are correct. In trading, however, me person who can easily admit to being wrong is the one who walks away a winner.

Besides trading, there is probably no other profession where you have to admit when you’re wrong. Think about it. For example, consider a lawyer who, right before a big case, goes out with his girlfriend and stays up half the night. The next day, he’s drowsy and inadequately prepared. He ends up losing the case. Do you think he’s going to tell the client, “I’m sorry, I went out last night and stayed up too long. If I were sharper, I would have won the case. Here’s your money back.” It will never happen. He can always find some excuse.

He would probably say something like, “I did the best I could, but the jury was biased.” He will never have to admit he was wrong. No one will ever know the truth except him. In fact, he’ll probably push the truth so far into his subconscious that he’ll never admit to himself that his own actions caused the loss of me case.
In trading, you can’t hide your failures. Your equity provides a daily reflection of your performance. The trader who tries to blame his losses on external events will never learn from his mistakes. For a trader, rationalization is a guaranteed road to ultimate failure.”

I read it a couple of times before how realising how much truth there is within the interview. Being able to handle losses is of paramount importance and the quicker we can deal with losses the quicker we can become a stronger, all rounded trader.

New week


Well it’s the start of another new trading week and Christmas is less than two weeks away! Scary. My daughter turns one on Wednesday and it seems like yesterday I was in Australia watching her being born.

Karting was an absolute blast and offered a chance to relax a little and enjoy myself, it decided to rain for a fair few hrs and racing a kart on slicks in the rain is comedy and it was like watching it in slow motion mixed with bumper cars. It doesn’t rain too often in Dubai and it was great entertainment and a nice change.

I’ve had a little bit of interest in my e-books and I’m looking forward to Cash-master starting a review on it, although it probably won’t start in earnest until the New Year as trading will be winding down now for the rest of the year. If you have any questions, I’m more than happy to answer them.

I’m just putting a few finishing touches to a good article that I want to share and hopefully I’ll have it up over the week. Trading wise, today has been pretty quiet with all of the pairs that I trade being considerably range bound and it’s just been a case of waiting for the right moment and diving in and out, I definitely think this is one aspect of my trading that has improved enormously since I began trading. Only a couple of interesting news releases this week with the Fed rate and retail sales in the UK which should hopefully provide some decent sized movements.

John.

Go, stop, go, stop!


A bit of a mixed bag today with a win followed by a loss, rinse and repeat! As a fractional gain was made, I can’t have any complaints. My TUFXP strategies that I am currently offering in an e-book form for TUFXP users is going like the clappers. I’m going to be starting trading an hour early so I can take advantage of one particular strategy that is fast becoming a firm favourite when using TUFXP. Whilst I’m in sales mode, an independent website has agreed to market and test my strategies over a period of a couple of months. All sales will be done through this link.

I’m going to keep it short and sweet as I’ve got a few things to do before my big day tomorrow when I’ll try and be emulating Jenson Button, minus the skill.

Next week I want to touch on some trading psychology that I think will help all of us gain some useful insight. Until then..

Who pulled the plug?


Well I was moving along nicely with a 5% gain on the day and BANG! the electricity goes off. It turns out the there was a system error with the electricity company here and it caused a block on supplying electricity to the whole building for two hours. When I was finally able to get back online and get everything fully loaded, lo and behold I’d missed two winning TUFXP trades for 50 pips! DOH! Still, a winning day is a winning day and learning to take the rough with the smooth is all part of becoming a better trader. 

Tomorrow sees the BoE rate and QE program which usually brings plenty of excitement to the market and as always I’ll be looking to take advantage of some decent moves. The Dubai Financial Market (DFM) continues to free fall and has now fallen over  25% since Dubai World announced their request to delay debt repayments. Bad times for many investors who are claiming to of lost all of their life savings. My estimation of 1,800 has been easily passed.

On a more positive note, I’m feeling happier with how things are progressing and I’m very much looking forward to the New Year and a fresh start. It’s been a massive rollarcoaster journey the last few months and I’ve been tested to the absolute maximum within inches of crumbling but with support of trading friends and the ability to write down my thoughts has helped enormously. If you’re ever struggling with trading or anything, I thoroughly recommend starting a blog. 

Friday should be a great day as I’m doing another 24 hr karting event and it’ll be nice to clear my head and pound the tarmac!