Tuesday, 4 August 2015

Changing conditions with the new job...

Yesterday I started my new job and it couldn't be better. I am really happy and I am confident that I chosed the right company and position. It gives me a lot of financial freedom in exchange to less liberty. I had to consider that my trading is affected more than I thought. Unfortunately not in the best way so far...

Actually you would think that a job gives you financial security, so you can trade with less pressure. Obviously that't true. In this stage of my trading career the stakes and the money are not my biggest issues. If a trade goes wrong, I lose 2-3 Euros, that can't be a factor, which gives a bad impact. It's more the pressure to keep the right track. I hate to fail... so far in my life I achieved the most of the goals I had. Unfortunately trading is one exception, at least until now.

In my case the start of the new job had a bit of negative impact so far. I am really tired after a day in front of the computer. I don't have the same patience, concentration and passion at the ladders like before. Well, I traded just two days since the beginning, but I already can feel it. I am exhausted after 2-3 hours at the ladders, and I like to enter the markets quicker than before. Probably this behaviour is quite normal, because you want to use the limited time in a productive way. The danger of overtrading is just around the corner.

Probably I have to slow down a bit, just make a trade, when I feel fresh and patient. Beside I recognized that the pressure for a high hit-rate is too big at the moment. To be more relaxed to lose the one or other trade, I have to rise the ratio between average profit and average loss (risk/reward-ratio) a bit. Right now my target is 0.4, but 0.5 or 0.6 seems more adequate. It doesn't sound like a big difference, but it has a huge impact on the yield if I can keep the hit-rate more or less stable (-5% would be okay).

Overall the development is still delightful, but I have to take care of the warning signs. In this sense I will go to bed now. Have a good night and keep greening!


  1. Good to know you´re doing fine in your new job!

    About your post, I think you´re still adjusting to the new circumstances, but i can only say good things about trading part-time, in opposition to full-time.

    The pressure to achieve certain numbers can be a bad thing, i felt that some years ago and the solution that worked for me was to stop updating my stats on a daily basis as a trick to forget them while i was trading. I started updating them on a weekly basis and for the last years i only do monthly updates. From a certain point, trading has a huge pshycological component and sometimes these little tricks can help a lot! Also, i look at your numbers and they are so good that you can sustain a drop in the stats while still being in a very good position, so try not to worry too much while trading!

    Ps: I decided to give blogging a try (http://greeningisthenewblack.blogspot.pt/), so if you can include me in your blog list, i would be very grateful! Hope you find the content interesting as there are some common points between trading in different sports!

    1. Thank you, yes I am happy about my new job. The start was delightful. About part time trading, it has advantages and disadvantages. As an employee you have financial security and you earn more (at least me). On the other hand, don't underestimate the hours in front of a computer. After a working day you don't have the same energy anymore. With this fact I am fighting right now. I guess is a matter of time until I get used.

      My trading numbers are still fine, but I recognized that the pressure is too high with this setup. I try to make 1-2 ticks more with scalping, so the average profit will be better in comparison to average loss. So my profit will be the same with a 2/3 hit rate like now with 3/4. In the long run I can make more trades, because I don't hesitate so much. If you know that you need 75% hit-rate to make breakeven, you wait to enter the market until you are 100% sure. Sometimes is okay to go in, when your feeling is around 70-80%.

      About updating the stats... good idea! Yes, it can help not to do it on daily base. Somehow there is pressure to publish always a new all time high and that is not possible. One time in a week seems alright. Later - when the strategy is proven - one time in a month is sufficient.

      I added your blog. I am curious about it. Good luck and have a lot of fun with it!