Huck’s Year-end Review for 2011

Overall, 2011 was a good year for me. I may not have found a boyfriend but at least I’m ending it with my trading account in the green. Yay! Besides, who needs a boyfriend anyway??

I had a total of 19 triggered trades for the year. 11 of those ended up as winners, 7 as losers, and my very last trade for the year closed at breakeven. Consequently, this translated to a 2.75% gain on my account.

Date Triggered Trades Gain/Loss
1/20/2011 EUR/USD: The Trend is My Friend 0.57%
1/25/2011 GBP/USD: Trend Line Break 0.55%
2/9/2011 Possible Long Trade on USD/JPY 1.65%
2/17/2011 EUR/USD: The Perfect Setup? -1.00%
3/1/2011 USD/JPY: I Bought! 0.65%
3/9/2011 EUR/USD: Is 1.4000 a Top? -1%
4/26/2011 USD/JPY: Going Against the Trend -1%
5/9/2011 EUR/USD: New Yearly Highs in the Making? -1%
5/12/2011 Trading the News: U.K. Inflation Report 1%
5/24/2011 EUR/USD: Shorting on a Pullback 0.52%
6/15/2011 GBP/USD: Buying the Dip -0.50%
6/23/2011 USD/CHF: Short at First Sight 0.35%
10/18/2011 GBP/USD: Triple Top Forming? 1.34%
11/3/2011 Trading the Downtrend on GBP/USD -1%
11/10/2011 GBP/USD: Severely Oversold? -1%
11/23/2011 GBP/USD: Trading the Bearish Flag 1.10%
12/1/2011 Will GBP/USD Continue Trading Higher? 0.19%
12/8/2011 EUR/USD: Eyeing Resistance at the Falling Trend Line 1.33%
12/15/2011 USD/JPY: Short at Major Resistance 0.00%
  Total 2.75%

I know that ain’t much. But we all have to start somewhere, right? I’m really happy that I am able to conclude my second year of trading with a gain. Now I see myself as a breakeven trader after paring the loss I incurred in my first year of trading.

I’m keeping my fingers crossed that 2012 would be a profitable year for me. Looking back on the year that was, I think I was able to address the issues I had with my trading performance in 2010. For one, I did a better job in incorporating fundamental analysis to my trades. The discrepancy between my average wins and losses also improved from last year which implies that in general, the setups I took had relatively good reward-to-risk ratios.

Over the past year, I have also become more careful with my entries. More often than not, I waited for confirmation (i.e. candlestick patterns, Stochastic hitting overbought/oversold conditions) before taking trades. This has saved me from a few fakeouts which have otherwise burned my account. Whew!

But of course, there’s still a lot of work to be done. For instance, I think I should learn how to press my trades and keep my emotions in check when I’m trading. There were times when I feel like I could’ve made more money had I added more positions or held on to my trades. Meanwhile, calmly researching about the reason behind a strong, abrupt move in price and not panicking could’ve allowed me to end certain trades with wins.

These are only a couple of things that I will be working on in the coming year. And you know what else I’ll be working on too? My HLHB System. The Trend Catcher has served me well, but I really think that it’s not the system for me. I’ve spent some time tweaking it and I’ll be ready to share it with you next year. Stay tuned!

Okay, that’s all I have for y’all now. I’m off to spend quality time with the fam bam. Merry Christmas everyone!

XOXO,

Huck

Follow me on Twitter
Like my page on Facebook
Add me to your Circles on Google+

12 comments

  1. Al2cand

    Depending on how you calculated your trading size you might actually be at cummulative 3,7% gain.

    i.e.: 2,5% trade plus a -1% trade = 1.48%(from 100*(1*1.025/1.01-1)) or 1,5%(from 1*(2.5-1))

    Reply
  2. Zjwierie

    Forex involves a risk of loss. A bank account does not. Traders have to take on risk to get a higher expected return on investment than the risk free rate. In other words: if you don’t beat a bank account, you have made loss, exchanging certainty for risk and receiving nothing. This does not mean that you are a bad trader, it just means that trading is bad for you, and for the vast mayority of us retail traders it is.

    Anyways, merry christmas and a happy new year.

    Reply
    • Cillian Murphy

      A bank account is going to return whatever interest rate they decide to offer while your trading returns will correlate (we hope) with your effort and skill.

      Very few people wake up one morning and have the skills to beat the risk-free rate straight away; it takes time.

      Reply
      • Marshall Clarke

        Remember to always be Seeking Alpha!

        Alpha = (ActualReturns – S&P500Returns)

        If you make 5% and the S&P gains 2%, then you have an Alpha of +3%

        S&P closed 12-23-10 at 1257 and closed 12-21-11 at 1240.  A little math (1240/1257)-1 = -1.35%

        Alpha = (2.75% – [-1.35%]) = 4.1%

        An Alpha of 4.1% is not bad at all!

        Keep on Seekin it sister! ;)

        Reply
      • Marshall Clarke

        Excess Returns = (ActualReturns – RiskFreeRate)

        The “risk free” investment is often based on what you COULD have gotten investing in something “safe” which is usually calculated as a 10-Year Treasury bond. T-bonds are currently yielding an annual return of right about 2%

        So all in all your “Excess Returns” would be just a little over 0% meaning you assumed a lot of currency risk when really you would have been best off in a low-risk investment such as these 10 year T-Bonds.

        Reply
        • Pjvillegas2

          Mr. Clark,

          All you say is true and correct BUT, when people start trading they do it seeking the promise of becoming “financially free”. Investing in bonds will never gave you the self fulfillment that a trader feels when he/she make the leap from loser to winner. An efficient retail trader can easily make profits in excess of 100% percent per month, no bond in the world will yield that, and if you find it let me know!!!!!!!!

          By the same token trading forex IS DIFFICULT and the learning curve is slow and painful but it really worth a try…    

          Reply
  3. Jasoyafx (skype)

    I like the article, Huck. Your experience is a lesson for aspiring forex traders that you have to start from somewhere. Realizing a 2.5% gain on your account on your account and you seem to be comfortable with it is amazing. Personally, I have learn’t a lot from you on the virtue of patience. Keep it up and I wish you luck!

    Reply
    • Cillian Murphy

      I have to say I agree with these sentiments, and the most important thing is that you’ve improved on last year and learned hard lessons!
      Well done!

      Reply
  4. Joshua Pearce Gibson

    Good job Huckies. As far as I’m concerned, you’re beating most of us silly retailers, regardless of individuals’ opinions on math.

    Reply
  5. JamieJ

    Trading simple setups like you do will not get your account anywhere. Wouldn’t you want a return of a couple of 100% per year? The system is out there keep looking….   

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>