May 242013

Hello Traders,

I’m long past due for an update and as a result I have a lot of things to say.  First let me say thank you to anyone who is still following this blog.  It’s been a very long journey but I think those who have stayed will be glad they did.

A short recap:  In January I was on paternity leave and traded full time.  It was not good.  I finished up a couple points on ES but with commissions that’d be closer to zero.  I was really disappointed that I couldn’t continue my results from the last three months of 2012.   The first few weeks of February were negative.  And so I started consulting again.

I didn’t trade real money again until April.  Well I took 2 trades in March, a winner and a loser and finished a little positive.  Those two trades were more of a test and in April I was ready.  Lately I’ve been focusing on stats and from a stats perspective, April was my best month ever.  And the profit was not bad either.  I was very encouraged by this.  I got settled into my routine of trading the last 2-3 hours and looking for a pullback  to get on the trend.  If the market wasn’t trending I wasn’t trading.  It was really simple.  It’s the simplest trading plan I’ve ever had.  And I knew I was on the right track.

This month (May) has been more challenging.  The first two weeks we didn’t have as much continuation and I took some stop outs, all very small but they added up and kept me slightly negative.  But I knew it was the market and not me.  I can only take what the market offers, and the market just wasn’t offering much.  Since the middle of May things have picked up and I’m back on the positive side.  So now I know what it’s like to go through a few weeks drawdown and come back out.

I’m convinced if I keep trading my simple plan that I will have consistent results, but that has to be proven in time.  What’s cool about consulting is that it provides a good income and that takes all the pressure off of trading.  I don’t feel I need to trade.  I have no problems walking away.  I’ve went a week without a single trade.  That is cool and something I have never done before.   And the few times I’ve made a mistake, I’ve paid for it.  Lesson learned.  Next.

In the next few days I’ll write about what I’m doing.  I’ve updated the Zones indicator and I’ll be talking about that.  And I’m considering making some of the other tools I’m using available.  More on that in the next few days.  In the meantime, enjoy the volatility and good luck with your trading.