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March Review
Ok time for a March Review 2007. All in all this was a GREAT month, even though in terms of actual gain / loss I had a 17.3% drawdown overall. Despite the drawdown in dollars, I made big gains in the following:
MONEY MANAGEMENT: Firstly and most importantly, that 17.3% drawdown in itself revealed the fundamental flaws I spoke about in my money management system, and lead to some changes which I am now eager to forward test through April. Also, I kept thinking I was not overgeared, but in this month I realized I WAS still way overgeared. And I also felt good about the fact that I had changed down to my micro-account in order to go through this process, which obviously paid off in March (losing $12 instead of $1,200). My switch to tracking performance via percentages also meant that all of my results where MEANINGFUL despite working with this tiny amount of real dollars. Making the switch to my micro-account had required me to question some of my goals and motives and make changes, and be more in line with a more positive goal which is to achieve consistent gains before seriously funding my trading... This month, that decision was proved to be wise. PSYCHOLOGY: Secondly, I was very disciplined in terms of my whole approach, in the tracking of my results, and just my ATTITUDE towards the whole thing in general. This month my trading was more integrated into my life, which I think is a very important thing. I just approached it like a day job. At the same time, the fun and interest was high. TRADING SKILLS: Thirdly, looking at the drawdowns I had, I noticed that there were two recurring mistakes I was making and I then brought my focus onto these two mistakes, one of which as I stated earlier was the bad habit of getting sucked into a fast moving market and chasing momentum. That was responsible for the single biggest hit I took in a single day, which were two 5% drawdowns. The rest of the month then became a ditch digging effort to try to recover from this wild day, which in turn revealed that my money management system was flawed in numerous ways making it very difficult for me to recover. So that was March... |
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