Well today I began my new trading life…last week taught me a lot, and I mean the hard way. I had about a 35% loss to my account due to impatience, poor judgment, and panicking. I took the weekend to refocus, relearn what made me successful and start this blog. I have to say that I am pleased with my new cautious, thoughtful approach to the markets so far, but then again it is only Monday.
As for my methodology (I can hardly call it “my”), I basically subscribe to the Jacko method of trend trading. Now I do use other methods, but I keep them in sub accounts as to not taint the very simple yet successful way of Jacko. For instance, I use a Conv/Div MACD indicator for some simple entry and exit position idea’s. I also keep a careful eye on the fundementals in this now global economy, I think those that completely disregard the innerworkings of the world in favor of strictly Technical Analysis are missing a large part of the equation.
I have also struggled with the mind games the markets can play with you. It has been very difficult for me to get over the idea of NOT being in control at all times. This caused me to enter/exit positions too early or to late, both of which were very costly to my account (and my trading psyche). I still work on this daily and I feel like it has been a reapeatedly broken leg and will always be a limp…still looking for that cane.
On a more personal note – I had a root canal today at 8:30 (I like to start my week off on the right foot). My Dr. did a great job, I didn’t feel a thing during the procedure, but now that the Novocain has worn off – I feel like my face is falling off. He did give me a prescription for pain killers, but I am sure there is something in OANDA’s “Statement of Risk” they have a policy against trading while hopped up Oxicotton