SUMMARY OF RESULTS FOR 2016
Hey guys, how´s the trading been going?
As you can see from the Chart, after the very aggressive start, the gains became a little bit flat in the middle of the summer, with the Returns stagnating at 25% during this period. This coincided with the period of cyclical illiquidity in the markets and also reflected some fine-tuning of the strategy to go after more frequent trades.
These gains translate to a very good Monthly Returns so far. I would say that after an excellent start that provided significant returns in January and February, it has now leveled off to rates that are consistent with many Swing Trading in general.
For most of 2014 to 2015, most of my trades have targeted moves that offered at least 140 Pips to 200 Pips. However, I have now realized that many setups offer good trades of 100 Pips a lot more frequently, which often hit their targets within just 1 or 2 days and sometimes hours after entry. This compares to the average holding period of 5-7 days for the larger trades. What this means now is that with the combination of these two types of trades, larger and more frequent gains are now more likely to be realized within a very short period of time.
The Chart below shows the summary of trades made this year. As you can see in the Duration column, most of these trades have been captured within 2 days. This means I dont have to wait that long for trades to be hit which translates into less anxiety and uncertainty which can prevent trading success.
For persons who have been used to Day Tradng, these smaller holding periods can offer an excellent way to transition to Swing Trading which can often feel like a very frightening leap to take given the need to hold trades longer. However, once you get accustomed to this style of trading, it will longer be intimidating to hold trades for this long.
Another great benefit of Swing Trading is that trading is done an average of 3 times per month. This prevents you from overtrading and allows you a lot of "breathing room" between trades to remain objective. Revenge trading is an Ugly Demon that gets into our heads whenever we lose at Day Trading, causing unnecessary losing streaks as we become more emotional. By only trading when it is necessary, you can be better able to target the best, most profitable trades, while minimizing your portfolio´s exposure to market volatility.
So in summary, while this isnt your perfect "Dream" or "Holy Grail" strategy - whatever that is - it offers an excellent example of how Swing Trading can provide consistent returns over the Short and Long-Term while preserving your capital against emotional trading and market turbulence.
Even though we Can trade every day in a market thats open 24 hours daily, it doesnt mean that we Should. This is a very dangerous market with high failure rates due to the extreme levels of intra-day volatility. Even some Weekly movements that Swing Traders target can become very dangerous as well. It therefore means that the less frequently you trade, the more you can stay away from getting caught in these traps of volatility and stay focused on the Best, High-Paying Trades every month.