Oh, Mr. Market... What Big Pips You Have!

I had a bit of trading discipline this week and did not try to ride the GOL at just any level. I kept trying to get in at around the 1.42 or 1.43 level. I almost succumbed to buying at the 1.45 level, but when it kept touching north of 1.47, I did not even blink. Of course, GBP/USD was starting to appear very seductive and there was no doubt I wanted to wrap my trading legs around the GOL. Judging by today's action, I didn't miss out on too much.

The Euro Heroes couldn't handle the pressure and surrendered to the Men of New York, breaking below 1.20. I was going to bet my subsistence farm that it wouldn't do that, but had some sense in not doing so.

My portfolio?

-4.72% on the SBA
-3.33% on the Roth IRA
Couldn't buy EUR/JPY or GBP/USD for a week
The most noteworthy decline in my portfolio today: HWD with -6.16%.

My trading is like a four-year cold that won't go away. I think it's time for Nurse ForexDiva to get some market healing, which will invariably require a capital injection. I've crystallised my next steps now.

I've decided once and for all that no matter the direction the market takes, I'm going to find a way to make moola. I've been an Awful Bigoted Woman for too long now. I'm taking my rose-coloured glasses off and the rest is going to be history.

It'll take me some time to get the asset allocation part right, but one account is going to be honouring the bulls and one account is going to be toasting the bears. I'm doing the whole market! My ultimate goal is to buy a slight break below 52WL and sell a slight break above 52WH. It sounds so simple, but in practice, it's rarely that easy. There are still so many stocks trading at Price/Sales and Price/Book ratios of below 1. It may sound repetitive, but that strategy has worked like a charm for me this year, especially on the stocks with more cash than liabilities. The part I really got wrong, and the most critical part, was the profit taking. When a stock breaks above the 52 WH, my rose-coloured glasses get even rosier, clouding my thinking some more. Fakeouts happen both ways.

If I manage to get my simple new strategy right on the majority of my trades there'll be champagne for all.

First, I need to start treating myself as an asset rather than a liability. I think everyone grows up thinking they are either an asset or a liability. Once we brand ourselves as one or the other, it's very difficult to reposition ourselves as the alternative. It takes time, effort, and a very big budget.