Dec 012012

I haven’t been blogging lately, but I have been trading amongst other things like work, family time, homework with the kids, exercise, and playing flute & piano.  It’s a turbo-charged schedule during the week and if I am to dedicate a couple hours/day to trading, it has to be worth it.  And so far I think it is.

November was a great experience for me.  I simplified my trading quite a bit.  Actually that started on November 2 when I had a full day to trade.  My goal was to simplify as much as possible so that I can focus on execution and eliminate costly discretionary mistakes.  And the results are very encouraging.  I ended up 11.25 pts.

Interesting enough I had 10 pts in losses on two days that were plagued with mistakes.  Each time I make what I believe to be a preventable mistake, I take some notes and update the plan to try to reduce the chances of it happening again.  Without these two bad days, I would have made twice as much on the month.  That’s a really powerful concept for me.

I traded 1 lot and I go for 2-4 pts.  My largest winner was 3.50 pts and largest loss was 2.25.  My average win was bigger than my average loss, which has been a priority for me.  Since these metrics are skewed by scratches resulting in small wins, I think the metrics are very positive.

Here are my stats, I’ve drawn arrows to the stats that I am watching the most:


My goal is to improve on these stats in December by letting my trades play out more (less scratching) and reducing preventable mistakes.  If December goes well then January I will go to 2 lots.  I’m taking it nice & slow.  December is going to be busy, we have a major project deadline at work, kids have Christmas parties, shows, and concerts, etc.  And don’t forget Christmas shopping.

I’ll write more when I can.  I want to thank everyone who is still along for my adventure and I hope your trading is going well.

PS: A few more thoughts:  Eliminating half of the losses on just those two big losing days would result in a profit factor of 2.0.  With a simple, repeatable method that has low risk and drawdowns, one could trade 4 lots or more easily.  That means with just slight improvements to my trading, I could generate a potential $3200/month in trading income just trading the last 1-2 hours of each day.  And going to 8 would double that.  So my focus isn’t on squeezing out every tick on my winners, but just having something repeatable with low risk so that I can start increasing size.  Thanks to Max for sharing his ideas with me about this concept.



  2 Responses to “November Results”

  1. Thank you for posting, enjoy the blog. Would you mind expanding on your current strategy?

  2. Nice Job Michael. Keept it up!

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