Wednesday

Trading Report Card - Jun 09

Trading Summary

I entered this month following a strong uptrend from the previous month. You can see most of the profits were made in first week. The trend did not last long and the market began to consolidate for the rest of the month. The mistake that I made this time is that I did not fully utilize the chance presented in this uptrend. If George Soros is my mentor, he would have advised me to maximise my capital and take as much leverage as I can. A good trader knows that such chance does not come very often as the market spent most of it’s time consolidating. Hence, it is so important to make the best out of it when it comes.

Another point to bring up is that you notice my win rate is only 4 out of 7 trades. But I am able to end up profitable. It just emphasizes that you do not have to be right all the time but most importantly, your wins must be big enough to cover the losses. In order to do so, you must take your losses fast and let your profits run. By leveraging when you are right, you will increase the profits further.

I was using the T3B system to make my trades except for the last entry (Sino Yizheng Chemical), where I was trying out Dr Alexander Elder’s Elder Ray indicator. I am still holding onto the trade and will likely report in the next month. In addition, I will share with you the evaluation of this indicator.