“OF COURSE MOMENT”
Many traders are inclined to act prematurely when establishing a position that later ends up haunting them. In fact, it’s quite common that these traders will have the direction right but will only suffer from a mild but disastrous error in timing judgment. A trader will jump into a position, it will then move against them, they will stop out, and then inevitably, the trade will start to reverse back in their favor. The moment right after the trader stops out and the market begins to swing in the direction they had initially anticipated, is the “of course” moment. It is the moment in which the trader will yell out in frustration (in whatever language) “of course”…..”now it goes my way.”
As a general rule, my methodology revolves around trying to isolate the “of course moment” and only then establishing a position. There are times when the trade doesn’t quite get there, and there are also times when the position will still stop out, but in the end, having the comfort of knowing that we are targeting entry where many already have been stopped out, should provide us with a competitive advantage.
P&L Update and Overview: Many of you have been asking for a way to better track trading results and open positions. In response to these requests and in an effort to be fully transparent, a simulated portfolio was been created in June to track and mirror all recommendations and trades. Below is a return on equity curve since inception on June 1, 2009, along with an open and closed position tracker. I am hopeful that this will make things easier for you all.
Additionally, please feel free to check out a full profit and loss statement since inception on June 1, 2009.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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