March 4, 2013
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Trading Update: February Performance
As I explained in my trading update for the week, had a great week going into Wednesday, where that strong reversal and run up sunk my boat for this month’s returns. You win some you lose some. But like I also said, I learned quite a bit from the month’s experience which I think will prove instrumental in moving to higher levels trading to eclipse last years performance.
The chart basically shows you the strengths and weakness of my directional trading. When I’m right in the direction I can get explosive returns, but when wrong I can get shut down or stung. What I learned this month should help greatly neutralize the problem of getting the direction wrong while keeping all the benefits when getting it right, which is why I’m so excited going forward.
Ironically, if I had gotten the direction on Wednesday right, I would have had big gains this month, but less understanding of how to correctly apply hedging, leaving me more vulnerable for future losses. This gives you the paradox of trading – losing days can prove to be MUCH more beneficial than winning ones if they help you to identify and correct any weaknesses. Many traders make the mistake of trying to put aside and forget their mistakes instead of thoroughly analyzing them to see what can be learned going forward.
One’s ego has a tendency to dismiss errors as flukes, but the key that a lesson hasn’t been learned is when the same mistakes are repeated. I was stuck in that loop for the longest time until I was finally able to move forward. Just another reason why trading has its difficulties.
If all goes as planned, this may be the last dramatic/volatile “roller coaster type” chart of performance made…..we shall see!
February Performance Vs Indices
