This week has been an extremely slow trading week for me. I think I will need to bring back the weekly accountability report.
You do not need an accountability report when production is good. I would have to attribute this week's mediocre performance to less than usual intensity.
Do not confuse lack of intensity with lack of motivation. I am more motivated than even. I think the intensity ended up being scaled back a bit due to veering off course slightly and simple exhaustion.
Notice how I have said nothing about setups, stop outs, bad entries, ect. This is because poor trading is mostly due to factors that have nothing to do with the physical act of trading (once you have a methodology and can push the button).
I was still up slightly this week and traded with discipline and consistency.
I did everything I could in today's grind. The prep was awesome. The overlay looks good. I executed where I needed but had a lackluster result.
Some are probably wondering why I held the 2nd half of the position all the way back to break even. I got stopped out almost at the low tick prior to the reversal.
Answer: My plan was to shed risk quickly on the first half of the position because we had a very tight market. That was well done. On the 2nd half, the plan was to hold for a test of 941 and see if it would extend. I had to go break even after a 5.75 point excursion because the minor resistance I spoke of in the prep was extended and failed. Everything was completely objective and executed correctly. Trades do not always preform like planned.
I like to show these type of situations because many of the educational options out there do not address this. Traders think that if they can get into a trade that achieves a few ticks profit with an oscillator or Fibb tool that they can then figure out how to make money consistently.
There are 2 outcomes with this strategy:
1. Complete randomness in a sample size of trades due to taking profits when it "feel" right. This will work well for about 1 out of 1000 traders who are naturals. I am not one of them.
2. Scale out of the position in thirds taking quick profits on most of the position and "hoping" the rest will extend in their direction. Most traders favor this strategy because they want to get out of trades quickly without taking heat. This also generates random results...as well as massively inverted risk/reward ratios combined with the unavoidable fact that when you do hit that home run, it is with the smallest portion of your position size.
Think about this. When you invert your ratios and have a draw down, to come back you must produce better than average profits when you are trading your worst. Can you do that for a career month after month?
Most end up increasing position size or risk to try to make up for poor execution and end up turning a bad situation into an impossible situation.
Just a few thoughts for those struggling right now.
Check out the 1st EUR/USD Overlay. It was done midday so I saw half the hand before making my bet.
Check back tonight or later this weekend for some very detailed long term analysis on the EUR/USD.
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