ForexDiva's Contradictorian of the Year Speech (Transcript)
As I look back on 2009 and look forward to 2010, I wonder if I've done enough for my portfolio this year.
Certainly, I've blogged more often than I've traded, but sometimes we require this sort of downtime to define our strategy moving forward and to subtly but definitively establish our foundation for the future. I'm now much clearer on what I want to achieve with my portfolio and my life in general and have started implementing ways to get there. I've realised that on a very small account, it is not just good for one's trading ego to achieve triple digit gains, but triple digit gains are an imperative and a minimum requirement to becoming seven figures plus by using the principles of compound interest.
Sometimes, we get into a trade and it isn't until we're actually in the trade that we know - wow, I really should have taken the other direction on this one. Well, it's not too late to Stop & Reverse then. It's kind of like trying on a dress. You think the little black dress would make you look slimmer, but it turns out the little red dress actually enhances your assets a bit more.
My most important trading discoveries of the year:
1. Using a stop to exit on profitable trades is most often preferable to a fixed limit when you're riding a trend. Keep moving your stops. Finetune your stop moving as much as you can because this is where you gain a competitive edge.
2. If you have a trading ego, use it to your advantage via Stop & Reverse. I'm still figuring this part out, but I think I'm definitely onto something here.
3. Prince Turned Frog can become Frog Turned Prince in an instant. More often than not, it's not what you traded, it's the way you traded it. If you get your positioning right, your Prince Turned Frog can turn out to be the Alpha Male Prince of your dreams once again. Ooohhh...
4. Low Beta High Dividend for the Roth IRA.
5. Whatever you trade, be consistent and be persistent.
6. Look for really high risk to reward ratio trades using relatively good probability setups for the extra va va vroom ba da bing ba da boom.
To maintain any semblance of a social life - or actually, just any semblance of a life - these may be my two cents for the year.
Will I continue blogging in 2010? Will I contradict myself with some extracurricular 2009 blogs? Those are the million dollar cliffhanger questions.
Merry Christmas, my fellow Happy Shiny Forex Traders! And a very profitable 2010 to all!
No comments:
Post a Comment