As this year progresses, a few goals that I hope to achieve include the following:
1. Trade with the trend and increase the time horizon (when we finally find a trend, that is).
2. Cut losses quicker - have a hard stop no matter what
3. Don't let winners turn into losers.
4. Do not allow greater than a 10% drawdown/month
In all this volatility, I've fooled myself several times this year into believing that there is a trend anywhere. As a result, I've turned huge winners into losses. The most important thing in this kind of environment is to truly have no belief as to a general direction, but to take profits when they appear.
My equity is ahead by 42% for the year, but I did scale back my starting cash level on 1/1/2008. However the disappointment is that I was actually up 60% earlier in February, and this kind of drawdown is not acceptable.
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1 comment:
Good trading goals.
Are you still trading or just taking a break?
I like reading your interesting blogposts, so I hope you haven't given up on blogging.
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