Rejection Therapy + Christmas Eve Review.

Rejection Therapy and Video Review (24/12/12)

Celebratory Video Review(s)!

We're not dead (yay!).....

Friday 21st December 2012

.....so I'm taking a leap of faith and posting one (or two) of the "diaryvids" that I record as part of my personal record keeping.

As mentioned in the above video's description, they aren't made for public consumption. The audience is usually limited to me and my girlfriend (poor thing!) and, as such, they are rough around the edges...but I'm sharing anyway...

EDIT: Second part of the week's review:-

Week Review (Wc 16th December 2012)Pt2

What I've Learned- Month And Dataset Review.

 First thing to note is that there is an edge, as the pip-count, after spread (half of the costs incurred when trading at this size), is very much positive. Unfortunately those pips haven't quite covered commissions hence the negative result. This has pretty much been the case with my trading for the last three years.

In September's "Trading Without A Compass" post I referenced an idea that has plagued my trading for a long time- The "Profit Ceiling". I am lucky/skilled/aware enough to know when it has been reached but, despite that knowledge, this is how the four weeks panned out:

I know exactly why I traded past the ceiling on every occasion. First off, I refuse to accept that it exists (more on that in the 3rd and final reason). Secondly, I want/expect to be able to trade my method continuously. After all, if it worked to the ceiling, it should work past it right?

Wrong.

Integral to the method is my discretion. So, when I feel as if the ceiling has been hit- it has. Even if it is a self-fulfilling prophecy, it can't be ignored.

The other reason is not easy to write here, but I'm going to say it anyway.

I'm addicted to trading.

Somewhere along the journey, it stopped being about profit and became more about the challenge. Going up against the market is ALWAYS a bad idea. If I had simply stopped trading when I felt like I had bumped into this "Profit Ceiling", I'd have found myself up some $550 on the month, even with the >4R loss that occurred due to a gap against me.

This idea of going up against the market is ludicrous. Most people learn how to create an edge for themselves within a couple weeks/months of careful study of a chart. After that, it's an exercise in self control and a desire for long term results over short term thrill.

A bit disappointed in the lack of participation in this blog (not one vote on the last poll!!!) so may cut back drastically/stop as it's a waste of my time otherwise. I already keep detailed data in the form of spreadsheets (as seen here) and video diaries so only really here to ignite discussion on the real challenge that is trading...

....it's NEVER the market's fault. Long-term results are all our own doing. :)