Friday, June 20, 2008

19.06.2008 - 3 mio trading as usual...

>> Yesterday /18.06.2008/ I made a mistake as I abandoned the disciplined trading process and engaged in some overleveraged positions as I ultimately realised I was PUSHING the market.
The problem was I got some view that I was trying to validate thru increasing my positions while was impatient to get a clear confirmation from the market and the price action itself.
Logically this was followed by a large drawdown in the Equity as I was switching directions too fast and while trying to get the right opportunity the leverage size appeared to be very expensive >>> ultimately by the end of the day my account was -42%.
At the end of the day I went short EURUSD, GBPUSD, AUDJPY & EURJPY.
Those positions were held overnight but they all were in loss in the morning.

The 3 trades on the picture were the last ideas I had and I actually bet the farm on them as after I had the 1 mio trade back in April >> now I did my 3 mio trade. Congratulations as at the exit my trading return was approximately 128% and I reached Breakevenpoint from the peak on 17.06.2008.

The ultimate lesson learned is respect your risk management rules, trade consistently and never engage in a such an over leveraged gamble until you have an equity base that would not be hurt in a case of adverse market reaction!

>>> While I had Feb & March 2008 a very good trading period > then till June 2008 I actually was constantly losing while I was very diligently researching Trend following methods and traders.

I lot of information on Ed Seykota, Richard Dennis and Richard Donchian was digested to give me a better idea of the prospective direction of further development.

A search for an EDGE and disciplined PROCESS somewhat seem now a bit closer.

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