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.