Review of past 2 months
What an interesting 2 months of intra-day trading !
I have learned so much, traded a lot, and learnt particularly a lot about myself.
From a monetary perspective, I am a break-even trader.
This is a consistency I have acquired.
This bodes well for the future.
I am no longer in the 85% of losers, and am knocking on the door of the 15% of winners.
I have tried several systems, ( mostly paper ), and keep falling back to tried and tested methods.
I have started to move away from Moving Averages. Although, I still use them. And, I still use some indicators, but more and more to confirm basic TA.
I no longer use MAs or indicators blindly.
I have started to trade channels more effectively. I take profits at logical points, which is different to "letting them run".
Moving Averages, by their very nature, give exit signals too late. I have started to use channels and TrendLines to identify logical profit targets.
I fell more structured in my planning and execution.
Indicators, and MAs, are recognised as lagging.
TrendLines and Channels, beacuse they are forward extended, seem to offer a sense ( illusion? ) of predictability.
I havent fully quantified this.
I think I may never have a mechanical system, but strong robust rules give a definite framework to trade in.
I am beginning to see that trading is a balance between art and science.
I have had 2 great months day-trading. But, ironically, I prefer the swing-trading modes, and shall return to them.
Having read various threads, where people trade multiple times during the day, I think, 1 or 2 trades a day per instrument is better. ( reference to Hilda Baker, TrendSpotter, etc )
I will be starting a new IT contract next week, so shall be away until Christmas, so intra-day trading will cease.
Ove the past 2 months:
I have subscribed to Dan Zangers Chartpattern.com website. ( EOD trading of patterns. The Ehrlich Report is quite good ).
I have cancelled subscriptions to countless free daily analyses, which are mostly thinly disguised adverts anyway.
I have become a big fan of JillyBs Boll-band method.
Have tried, and failed, to master Ross 1-2-3 patterns, despite frugis obvious mastery of them )
Have started to take more notice of Elliot Waves, ( Joules comments ), as they may help to distinguish retracements from reversals.
Have lost faith in pivots.
I have, today received my copy of "Street Smarts", which I shall devour over the weekend.
General:
My plan is to continue being a freelance IT-bod, but to be able to take longer breaks in-between contracts, and trade.
I will always have the option to accept another contract ( fallback position ), so I have the freedom to take a couple months off and trade.
At the moment, the prospect of guaranteed money, gong into Christmas, is an offer I wont refuse.
Holy Grail:
I think I know what it is !! It is feeling comfortable with your own method.
If you have a method that generates profits that you are happy with. If you can accept the drawdowns without batting an eye. If you read about other systems, but only out of curiosity, not as a potential replacement of your own system. If you accept other peoples sometimes contradictory analyses, but trade your way anyway. If you learn new things, and, instead of ditching what you use, you find positive, useful nuggets to add to your own method.
If you read about new methods, and dont feel the need to rubbish them, just accept there are other ways to trade, and your own is just as valid.
I think that is the Holy Grail. And it is a personal journey.
