19 January 2013
Attached is an updated account tracking worksheet.
As I hinted at last week, I could feel my ‘trading mojo’ coming back, though the results last week were not that great. I ended last week (Jan 11) with my account down -11.6% for the month. This week started badly for the account, going down to as low as -42% for the month, but I end the week with the account more than double the level it was at its lowest. The account equity is now at $119,566, or +19.6% for the month so far. There is still a week to go in this month and I expect the month to end higher next week.
I have done an analysis of the trades last week and this week to see where I go wrong. The post-mortem analysis clearly shows my biggest weakness – IMPATIENCE! Almost all of the losing trades were due to anticipating the system signals. In each of those cases, abiding by my system rules would have reduced the loss to almost B-E, or would have returned a good profit. I am now back in sync with my system rules and will continue to remain in sync, hopefully producing the same results as the system which is up 65.6% for the month so far.
On to the actual fx pairs:
The AUDUSD has becoming like a stagnant pool – I will not trade this pair until it breaks out of its current tiny range – 1.0480 – 1.0580. What a fx trader needs is volatility and liquidity. From the price action it appears to me that the AUD is low on both right now. I don’t know why – perhaps the hot money is now channeled into the YEN pairs and the EUR crosses like EURCHF, EURGBP, EURAUD, etc where there is a lot of volatility.
An example of this is the EURCHF, which has had a great run these past 2 weeks. I have been tempted to get on the train, but there was no good ‘Technical’ opportunity to enter once I missed the breakout above 1.22. The opportunity will come when there is a retracement which will be just as furious and profitable. I plan to trade the EURCHF or the USDCHF instead of the AUDUSD as long as the Aussie stays stagnant and the CHF pairs are hot.
That’s all for this post, I might have another one on Zulutrade if I get the time later today.