I have compiled my Q4 2013 trading stats and I did NOT like what I saw. Luckily, my earlier trades kept me in the green for 2013!
|Oct 10||Time to Buy USD/JPY||-0.29%|
|Oct 24||EUR/USD Breakout Trade||-0.55%|
|Nov 19||Swing Trading USD/JPY’s Rising Trend Line||+0.61%|
|Dec 11||Retracement Play on GBP/USD!||-0.24%|
|Total Gain / Loss||-0.47%|
No. of Trade Ideas: 4
Trades Triggered: 4
No. of Wins: 1
No. of Losses: 3
No. of Break Even Trades: 0
Win %: 25%
Average Gain Per Winning Trade: +0.61%
Average Loss Per Losing Trade: -0.44%
I only have a handful of trades to reflect on so it doesn’t take a lot to know where I went wrong. First, I noticed that I took too few trades. This is probably because I was hesitant on opening multiple positions while I’m closely watching my USD/JPY swing trade. I ended up missing EUR/USD’s uptrend and USD/CHF support break. Boo!
I also saw that I’m not trading the strengths of my system. My SMAs work really well on trends but I chose to trade a breakout and a ranging environment. In my GBP/USD trade I even chose to go against my fundamental biases because it had a good technical setup!
Last but definitely not the least, I also see that I need to work on my stop loss placement. I need to balance getting good risk ratios with placing stop losses with enough breathing room. I should also pay closer attention to average volatility and current market biases.
Good thing that I only got a few scrapes with last quarter’s trading and was still able to end the year on the green. Here are my 2013 stats!
No. of Trade Ideas: 38
Trades Triggered: 20
No. of Wins: 9
No. of Losses: 11
No. of Break Even Trades: 1
Win %: 45%
Average Gain Per Winning Trade: +1.65%
Average Loss Per Losing Trade: -0.71%
As you can see, I did NOT have a good win %. Luckily, the average gains were more than twice the average losses. See how important it is to keep losses to a minimum while maximizing gains?
In 2014 I’m planning to put up more trade ideas but be more picky on actually trading them. I’ll also look for more trend trades (rather than breakouts and ranges) in order to utilize my SMAs better. Next, I’ll be more mindful about placing my stop losses and maybe risking more per trade so our efforts at fundamental and technical analyses won’t be wasted.
I’ll likely think of a gazillion more ways to improve on my trading but this is it for me for now. How about you? What tweaks are you making on your trading systems this year?
Thanks and XOXO!