Cash or Crash?

The trading blog read only by very nice people!

Mistakes Creeping Back

Posted by robbiechicago on March 9, 2010

Yesterday was a nice simple easing back into the murky depths of trading, today was a little trickier and some bad habits came back to haunt me.

Most of the time I think I traded pretty well and was fairly disciplined, but as before, it was when things turned against me that my response wasn’t great.  I am trying to drum strike rate, strike rate, strike rate into my mind as I think this could be the key to success.  However, a good strike rate will be ruined if the losses are large.  I had wins of 7p, 11p and 9p in the first three races of the day, and this was followed by a 15p loss.  In this case the loss was bigger than the individual wins, but small enough to be swallowed up by the positive strike rate.  However, the next race saw a £1.36 loss.  This kind of thing can decimate your bank and needs to be stamped out.

I’m almost embarrassed to write about how the loss occurred.  The mistakes made were the same as those I made time and time again last year.  You’d think I’d learn!  I used £2 stakes again today, but in this losing race, when the market moved against me I attempted to cover the loss by putting more money in and hoping the tide would turn in my favour.  It didn’t, of course, and instead of scratching out for a moderate loss I had to swallow a huge one.  I really need to be better at reacting more quickly when things move against me.  But the problem is, very often I do find myself a few ticks out of profit, wait and the market does move back and I’m back in business.  It’s difficult to know what to do in these situations, as many of my wins will come about to being patient and waiting for moves.  I guess I have to avoid falling into the trap of lumping more money in as this is where the damage is multiplied.

Anyway, as I say, most of the day’s trading was fine and I clawed myself back from this losing position to end the day 54p up.  Much of this came when I got on the back of a superb swing and made 52p from a £2 stake.  Lovely stuff, would like more of those!!

Right, here are the day’s numbers.  Hope you all had an enjoyable one.

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