Friday, 6 November 2009

Down and up...then down again

Sometimes, building up a large bank from nothing can be a real hindrance: I might see a nice lay opportunity but I can't cover the liability so I miss an opportunity. In saying that, having a small bank is keeping me disciplined since I have to 'reign in' my stakes somewhat.

Today, I found myself at -£3.70 without doing too much wrong. The doubt started creeping in at this point but I decided to up my stakes to £18 (my bank) and fight back. At 3:50pm I had scratched my deficit. At 4:10pm I was down -£4.43.

I probably should have walked away from the desk at 3:50 feeling good about my fight back. That way, I could have returned to it next time and fooled myself into thinking that the worst was behind me. But trading at this level is a bit like learning golf - you're only as good as you're last shot. So I carried on with the hope of some green combined with a dogged determination to succeed at this...and got stung.

I'm not going to over-analyse my trading too much anymore; I used to do that on a whiteboard, filling it in after every trading session. It was interesting to see my development and quite cathartic at the same time. Then I decided I need to trade more aggressively if I am going to get anywhere with this, and this blog is now my public whiteboard.

In case you're interested, here's the whiteboard:

The blue writing is information about the trading session; the red writing is things I did wrong; the green is things I did right.

So, onto today's P+L sheet:

-£4.43 using £10-18 stakes.

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