DON’T BE AFRAID TO KEEP SHOOTING
If all of the right pieces are in place with a solid trading methodology and strong risk management, it is perfectly ok for a trader to adopt a “keep shooting” mentality. To not give the wrong idea, the analogy is one to basketball rather than guns (we do not hold a “keep shooting mentality” with guns, although in some cases it may be appropriate). A good shooter in basketball is fully aware that he/she will run through periods of inconsistency, however, he/she is also confidently aware that any inconsistency during cold stretches are more than easily offset by impressive runs when the ball is dropping through the hoop. A similar approach is encouraged in trading. As an example, we had attempted to buy Usd/Cad 3 or 4 times over the past several weeks into the recent dip. The first 3 attempts (shots) resulted in only one triggered trade which yielded a very small loss of 30 points. However, when we finally got involved on the fourth attempt at 1.0660, we managed to catch a very rewarding trade for +260 point gain. Had we been discouraged in the first 3 attempts, we may not have been inclined to take another shot and would have missed a wonderful opportunity. In the end, make sure to keep shooting when the opportunities are there, but also don’t confuse this with forcing shots when there are no opportunities.
P&L Update and Overview: Many of you have been asking for a way to better track trading results and open positions. In response to these requests and in an effort to be fully transparent, a simulated portfolio was been created in June to track and mirror all recommendations and trades. Below is a return on equity curve since inception on June 1, 2009, along with an open and closed position tracker. I am hopeful that this will make things easier for you all.
Additionally, please feel free to check out a [B]full profit and loss statement since inception on June 1, 2009[/B].
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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“Tech Talk” – A Daily Video Highlighting Technical Developments in the Overnight Session of Trade.
Monday-Friday (between 5:30am-6:30am EST)
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“Indicator of the Day” – A Feature Report that Highlights our Most Significant Technical Indicator of the Day.
Monday-Friday (between 8:00am-9:00am EST)
“Midday Snapshot” – A Midday Fundamental Update, along with Technical Analysis of Selected Rates.
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“Scandi Daily” – A Specialized Daily Fundamental and Technical Overview of the Nordic Currencies. (This report is only distributed through email. Please contact [email protected] if you would like to be added to distribution.)
Monday-Friday (between 11:30am-12:30pm EST)
“Daily Classical” – A Daily Technical Overview of the Major Currencies.
Monday-Friday (published between 2:00pm-3:00pm EST)
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