@Spudfan (Alistair). You’re a JINX!!! LOL!!! Since you showed up with that EUR/CHF chart just look what’s happened now!!! LOL!!!
All jokes aside now…
Major moves down today as I’m sure everybody knows. Have been at just under 10% loss on one or two occasions today. But: it is what it is. And I cannot say it disturbs me or puts me on edge. That’s one beauty of this trading system (unless you’re trying to get clever of course): it’s relatively stress free. Is it nice to be sitting on losses??? Of course not. But most all of the time: patience pays off. I’m not saying that these things are going to turn on a dime tomorrow and shoot into profit. For all I know they could go down more and no matter what the case I’m going to take a loss. But thus far: historically those losses are far less than they would be today for example.
One other thing that I believe is very important to mention here and that is leverage. Today is a FINE example of the BENEFITS that are a direct result of the ESMA’s margin rules. There is no doubt in my mind (given my circumstances) that I would be trading WAY bigger positions if I still had WAY much more leverage, The floating loss detailed above could easily have ended up being 40% or 50%. And THAT is when people start to panic. Anyways. Just mentioning this i.e. maybe one or two of our “get rich quickers” will stumble across this and see why I bang on about leverage and why it should be respected. Yes i know: one could argue that it doesn’t matter i.e. if my tick values etc. were commensurate with my account balance then it should matter. But that’s just the point. Some people can and some people cannot. And I’m one of those people who needs that type of oversight. Happy to accept it because I know my shortcomings.
So yeh. Not the best of days. Worse still: the Dow appears as though it’s going to close below its 200-day SMA (then again I’ve said this before in just the last few days i.e. lately these things can recover on dime and usually in the afternoon and going into the close)… Anyway and point is: if this does happen to be the case then I cannot scale-in to the position which is a pity. The FTSE100: same thing (at this particular point in time anyway). As for the rest: no problems i.e. will scale-in further at the close.
One last thing: I’ve mentioned this before but again today a real world example. Because I never stayed up on Friday to TP on Australia that position has now gone against me and without hitting the TP that I set over the weekend. Sometimes that works. Sometimes it doesn’t. So just bear it in mind. Of course this does mean I’ll be adding to this position as well.