Not so fast..

A bit of a kick in the teeth late yesterday it has to be said! I was cruising along after a solid day when a TUFXP trade appeared and also a breakout trade. TUFXP trade missed it’s scalp by 1 pip and the breakout was stopped out by 5 pips before reversing to the scalp. These ultra fine margins when day trading can be a real head banger! Whilst is was very disappointing, I know that you always have to take the rough with the smooth to be a long-term winner and there will several occasions when the fortune will be on my side. Having the mental strength to cope with these annoying losses is of absolute importance and I can’t reiterate enough how much that area has improved the last 6 months. I’ll try to do a little post on that also.

Results wise for my e-book it was a very solid day with 5.5% gain the same as Monday which puts it on 11% for two days. If only it could continue like that I’d be a very happy man. You can see the results here.

I’ve been on the lookout for some decent Forex blogs or gambling blogs so if you know of any please let me know. I thought I’d make a little post about who makes up the market and how they affect trading in the next day or two as I find pretty interesting how certain factors can manipulate a particular pair. It’s well-known that the BOJ (Bank of Japan) regularly intervene when the Yen becomes overbought or oversold and infact some people even trade solely off indicators/warnings that show when this might occur. Anyway, more on that in another post.

As I type, currently GBPUSD is incredibly volatile with 15/20 pip movements within seconds then suddenly retracing causing some hefty whipsaws and spikes, I think it’ll be a case of picking my trades very carefully until this cycle is broken. It appears 1.5950 is proving a real stronghold to pass.

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    • AlinCairo
    • January 6th, 2010

    John,

    Good gains for the week, I have a quick comment on psychology. If you are hoping for 50% gain per month (2.5% per day assuming 20 trading days) do you not feel you are in danger of overtrading or chasing gains. 5.5% yesterday was excellent and maybe a good time to walk away and relax rather than getting frustrated about late losses.

    Just a thought, we are all guilty of this and it should be part of our trading discipline at all times. Lookig forward to following the exploits for the rest of the year,

    Cheers,

    al

    • Hi Alan,

      How’s Cairo? Whilst 50% does seem a high figure, this can be achieved through the use of a decent compounding model and of course successful strategies. By using compounding the actual gain will be 50% but the net gain from the settings will be less.

      As I trade TUFXP and non TUFXP strategies, it does make it hard to distinguish between when to stop and when not to but for the sake of the readers, I’d like to show an overall gain and what the e-book is capable of alone.

      Thanks for the comments and duly taken on board, I think 110% discipline will never be achieved whilst the human element is involved but I’ll try my best.

      John.

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