My $500 is now $730!

My summary for this week is… the week where I set some goals!

This week the markets have wanted to give me a little more than they have recently and I managed to make $90 profit this week. This is the biggest profit that I have made in a week since I started this test with a $500 account so I am very happy with that. However upon review there are still areas that I can improve on, so I have set some targets to try and help me to achieve this.

I have noticed over the last couple of weeks that sometimes when I am ahead in a trade and I have my stop brought up behind me, I like to re-enter the trade if I get stopped out for only a very small profit. However the trades where I re-enter are currently making a loss over the long term and this is clearly a strategy that is not working for me at the moment.  Because this is something that I am used to doing I know that it is going to take some work to be able to remove this from my strategy.  Hence I am going to do 2 things to assist me in this process.

Step 1

This is a nice and simple step. I am just going to set myself a target to only enter trade signals once, regardless of the result. I am going to try and do this for 10 consecutive days where I take a trade. I have written this down and I have this in front of my trading screen. From previous experience I know writing goals down and making them visible gives me a better rate of success.

Step 2

Visualisation. Now I am far from an expert on this, but there is plenty of research out there that shows that visualising how you will react to a given situation can actually make it easy to react the way you want to when the situation arises in reality. Based on this I am going to take just a couple of minutes 3 or 4 times a day and visualise how it feels when a trade I enter gets stopped out for only a small profit. I will then visualise me then doing nothing and waiting for the next opportunity to arise.  Now I know that this may sound like a strange technique but it is something that has worked for me in the past. There is also a lot of good material out there for anyone who wants to dig into it in a little more detail.

Until next time…