Sunday, 4 March 2012

What a Difference a Year Makes

Today, I looked back on a couple of posts I made a year ago and one in particular caught my eye:

Deer in the Headlights

It is about that 'deer in the headlights' moment, where we aren't prepared for something to go horribly wrong and when it does, we don't know what to do so just sit there staring at the ladders and hoping for the best. Reading over the whole post, it really does feel like another life-time. The way I was trading back then, I was always just one minor error away from losing the plot. If I had a bad start to the day, things would often snowball so quickly out of control that I could be hundreds of pounds down by the end of the day and my mental state in tatters. And it wouldn't necessarily end there. Now, A good night's sleep always signals a clear head and fresh start the next morning, no matter how bad the preceding day was. A year ago, I would often wake up feeling positive but the losses from the day previous would still be festering inside my subconscious and I'd be chasing, whether it was obvious or not. The startling thing though, is that once again, it's clear that I knew what I SHOULD be doing, and my analysis was excellent but I failed to take it on board and execute correctly for months and months afterwards.

I'm happy to report that I never put on that pair of antlers anymore! That's partly down to the fact that I have a clearly defined set of rules on when to exit, which I have confidence in. But even if I slip up and don't manage to exit when I should, I also have a big safety net because my risk-reward ratio is far, far better than it was last year. So if I do have a brain-storm or simply fail to get matched in time, I know that the worst that can happen is a 2-3% loss of my bank. That's because my staking and the prices I take on are not as risky. A year ago, if I was caught in the headlights, I could be losing anything up to 25% and if the red mist came down, I would even risk 100% on rare occasions!

Don't get me wrong, I'm still constantly working every single week on the mental side of trading because I know how quickly things can slip if you are not wary. On March 1st for example, I noticed that I seemed to relax a lot, following the end of my successful February. I just took my eye off the ball for a few games and I'm certain it's because I was still basking a bit in the glory following my best ever month. It gave me a bad start to March but I'm much more philosophical about it than I would've been a year ago, and shrugged it off. Plenty of time to put that straight!

OFF-COURT BEAUTY: World number 1, Victoria Azarenka:


3 comments:

  1. Hey Sultan,

    I visit your blog almost everyday and this for more the one year. I'm soo happy to see you doing fine, finaly after such a long period of ups and downs. In summer i wrote you a message, where I send you some angry lines, because you wrote about putting your bank or the biggest part of it on a soccer-game to recover your losses. At this stage I thought, is he crazy?! Will he ever get beyond this stage?! What the hell is he doing?!?!?!

    So its very pleasent to read about your latest efforts. From what I red, I think that you got a big step forward, and I hope that you will continue this way!

    The funy thing is, that I nearly was at the same stages as you in the same period of time. I lost money at the beginnig of 2011, still think I know whats going on, break even at the last months of the year, and be in profit this year :-)

    btw: Could you post some more P/L-Pages? May be from the last month. Thanks!

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  2. Thanks Picard, I remember your post from before and things have changed a lot since then!

    I probably won't be posting up any more P&L pages, partly because I can't be bothered (it takes too long fiddling around putting them on the blog) but also, it won't show anything else of interest. You'll see the same pattern of results on every page; lots of small losses and a few bigger wins. Maybe I will do more at the end of this month, if I'm in a good mood ;)

    Hope your trading is going well and thanks for your encouragement.

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  3. No problem. But keep it up with the hot ladies! ;-)

    ReplyDelete

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