Monday, 1 October 2012

September: The Results

I've been in two minds as to whether to post up my monthly P&L anymore. Following my post which discussed the subject of viewing other trader's P&Ls, it feels slightly hypocritical. I don't like the idea that other traders might feel that they should be making consistent profits or amounts that I'm making, when they may be at a totally different stage with their journey. Not that I'm making large amounts - I'm hardly going to make too many people jealous! So what I'm probably going to do in future is change to simply writing down the percentage of my bank that I make. I feel that makes for a fairer comparison for everyone of all trading levels and experience. Not that you should be comparing yourself with what anyone else is doing but humans being what we are, it is only natural that we will do this. It's not as trustworthy as a Betunfair P&L screenshot but then, if you don't trust me by now, with all the ups and downs I've documented, you never will!

Just for the record, I have gone back to using an average of 2.5% of my bank as my liability for each trade. I did increase it for a few weeks to 5% but feel that I'd rather have the peace of mind that the lower percentage brings. It allows me to have 20 maximum liability losses on the spin and 40 average losses. Neither scenario is likely to happen (I haven't had 2 max losses in a row for a long time) but I do quite often have a run of average sized losses (0-2%), so it's best to prepare for the worst. As I'm currently still unable to increase stakes because I have to withdraw all profit, my maximum liability remains at around £50 for most trades.

As you can see from my screenshot, it's been a disappointing month - my lowest profit since January. I put this mostly down to some erratic trading caused by my failure to adapt well to changes in trading hours. With the tennis tour shifting from the USA to Asia, it meant a sharp turn from finishing at 2 or 3am, to waking up to start trading at 6 or 7am. I really didn't cope well with this at first and found myself way too tired to fully concentrate to the level required. It cost me on several occasions but the fact that I still came out of another decidedly ropey month with profit, can only be a good thing. My average profit per month in 2012 is still approximately 50% of my bank, so I'm more than satisfied with that if it remains that way in November, when the season ends.

October is the last month with a full programme of WTA and ATP tennis, so I suppose I may as well continue showing my P&L for now. There isn't  a lot else to report. Trading for me is now an ingrained habit. I enjoy it for the most part. The pressure I have to make money is low enough to mean I never experience fear or anxiety, whilst the small amount that does exist is enough to drive me forward and remain professional. My biggest fight is still with myself. I lose focus every now and then and I still find it tough to shut out distractions when I'm in need of new stimulus. If I can find a way of taming my wandering mind and itchy keyboard fingers, there is very little standing in my way of continued success. I think the fact I can't compound my profits doesn't help because once I get stuck doing the same repetitive things with the same stakes and same bank, I feel stagnant. I'm just not naturally good at repetition - 'variety is the spice of life' would make a great tattoo for me.

Maria Sharapova:

4 comments:

  1. If you do decide to quit showing end of month P/L, that will be a shame for me at least as I've always looked forward to it.

    How people receive a picture of a P/L screen all depends on how and when it is shown. If like many blogs it's just a constant flow of profit screens, omitting failures, then that's clearly just bragging. If as you do, show just one to round of the month, that shows if people work hard enough then trading can work, then for me this is great to see and is a boost for the rest of us.

    Until I found your blog, the only blogs I came across was the ones showing P/L screen after screen which didn't do anything for me other than frustrate me. Yours was refreshing as you wrote about not only your highs, but also your lows, finally an honest blog showing warts and all. Now you’re in a position to show one p/l screen shot per month, I say why not.

    I personally like to see P/L screens and have actually help me to progress as it shows me what is possible. I recall in one of your very old posts that you wanted a 100% ROI on invest each month! I know you didn't hit it this month, but if my figures are correct, you've done it a good many months this year, something that I did not think was possible.

    In combination with my disastrous first 6 months of this year, ditching of my old method and building from scratch, with your very own screen shots in mind I've looked to reduce stakes and liabilities, but increase ROI, all of which is going well so far and now 100% ROI is quite possible!

    Personally then I hope you keep the end of month screen shot, be it good or bad.

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    Replies
    1. I guess you are right, I'm glad it has been of benefit to you.

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  2. Hi Sultan,

    great blog. I am starting a new blog with a challenge 500 to 5000 Euros.... Can you add my blog to your list ? thx

    http://tennistradingchallenges.blogspot.cz/

    ReplyDelete

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