So I began 2013 with a new trading plan having done a fair bit of back testing on my strategies, and it's been a fuckin' emotional rollercoaster. I've ended the month in profit, but at times I wasn't sure if this was gonna happen. Got off to a good start in the first week of the new year. 5 trades in the first week. 3 wins and 2 losses. All 3 wins had a profit ratio of 2:1 (meaning I made twice as much as my risk). Remember, for the moment I'm only risking 0.5% of my account per trade, so to end the first week with a 1.5% gain on my account was a good result. The following week was even better. I made 7 trades, with 3 losses, 1 break even and 3 wins. Two of those wins had a profit ratio of 2:1 and the other one was 3:1. I made a 2% gain on my account that week This is only risking 0.5% per trade. If I had risked 2%, I would've made a 8% gain on my account in a week! A bank wouldn't give you that in a whole year! Man this is going well I thought.
The next week was a fuckin' bad week. 10 trades, 2 break even and 8 losses. Everything I had made in the first couple of weeks I gave back. Felt like I was in a boxing ring getting a good beat down. The market was beating me up. I was just glad when that week was over.
Week after that I only made 4 trades. Two losses and two wins at 2:1 a piece. Nice to end the week in profit.
This week I made a terrible start. Made 5 trades on Monday and lost them all. Felt low. It wasn't even lunch time on monday and I had lost 3 already. Two of those losses should never have happened. I didn't follow my trading plan properly. The other 3 I have no problem with because I followed my trading plan, and I know losses are part of the game. Then two winning trades at 3:1 and 2:1 put me back at break even for the week. Ups and downs, ups and downs, it's been an emotional rollercoaster. This week was particularly difficult with the 5 losses on Monday, but the month ended up well. Not a lot of profit (a 0.8% gain on my account to be exact), but I can't complain too much. I'm still learning, still a novice in the game, still back testing, and I'm better than most novices. In fact I'm better than a lot of guys who have been at this game for a long time. I'm no clown, and I WILL become a winner. In Rocky Balboa, Rocky gave a speech to his son, saying how life will beat you down but you have to keep moving forward, because that's how winning is done. That's trading. I know losses are a part of my strategy, because I will not have a high win rate. What I do know is that when I win, those wins will be 2:1 or 3:1, and in the long run I will come out on top. I have spent hours and hours back testing, and I am recording every one of my trades in a spreadsheet as well as on this blog. It's very difficult to keep going and believe in your strategy when you get 8 losses in a row, but nobody said this game was easy.
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