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We’re down to our last trade reviews of the year!

Here are my trading stats for Q4 2012 and a few lessons that I learned along the way:

Trading Performance

I have to admit, Q4 isn’t exactly my top trading quarter as I had fewer trade ideas and even fewer triggered positions.

Check out my trades and see for yourself:

DATE TRADE IDEA P/L in pips P/L in %
Oct.11 Strong Aussie Jobs Data to Boost AUD/USD?
Oct.18 Simple Range Play on USD/CAD
Oct.23 3 Bullish Signals on AUD/USD
Nov.08 Swing Trade: AUD/USD’s Uptrend
Nov.22 Long USD/CAD: Will the Channel Hold?
Nov.29 USD/CAD’s Break and Retest Setup
Dec.12 Catching AUD/USD’s Rally

No. of Trade Ideas: 7
Trades Triggered: 4
No. of Wins: 2
No. of Losses: 2
No. of Break Even Trades: 0
Win %: 50%
Average Gain Per Winning Trade: 60 pips / 0.41%
Average Loss Per Losing Trade: 33 pips / 0.50%

What bugs me is that I could have taken advantage of the strong price action and relatively one-directional movement of the comdoll pairs this quarter.

Oh, if only I wasn’t too attached to fundamental analysis at the time!

I probably could’ve seen that risk sentiment and U.S. Fiscal Cliff concerns would be enough to drive high-yielding currencies higher by multi-hundred pip highs.

But hindsight is always 20/20. Looking forward, I was able to spot some of the mistakes I made and come up with the following resolutions for 2013:

1. Adjust position sizes accordingly.

Throughout the quarter, I always risked my usual 0.5% on every single trade, regardless of whether it was a swing trade or short-term setup.

In the past, I’ve noticed that I tend to do better on longer-term trades so I should probably risk more on those next time.

On top of that, I will consider adjusting my risk per trade depending on how confident I am with the setup.

2. Don’t dwell too much on reward-to-risk.

Okay, I’ll admit it. There were times that I set my stops too tight just to make sure I get a pretty good reward-to-risk ratio, sometimes to the point of sacrificing some of my technical analysis.

While I’ll still continue to consider R:R whenever I take trades, I’ll have to remind myself that I shouldn’t compromise my initial analysis just to get a better ratio. If I find a setup that doesn’t have a decent R:R, I’ll just move on to a different one instead.

3. Avoid tunnel vision.

As I reviewed my recent trades, I noticed that I’ve gotten stuck trading just one comdoll pair for consecutive weeks even if I do switch sides. Could it be that I’m being stubborn, trying to prove that I can eventually profit off a single comdoll pair?

From now on, I will try to broaden my vision and look at all potential trades on all comdoll pairs before actually choosing which one to trade.

Another change I can implement is to start looking at non-dollar pairs which still involve the commodity currencies. The reason is that sometimes the U.S. dollar is just too jumpy and tough to predict that I might have a better chance at profiting if I trade other pairs instead.

4. Go on an adventure!

I heard that my homegirl Huck made a resolution to find a boyfriend this coming year and I must admit that I thought of doing the same. However, I don’t think I’m ready for that just yet and I would rather enjoy my singlehood by going on an adventure first.

This may not seem trading-related at first but I remembered Dr. Pipslow’s article on how taking a quick break from trading could help clear one’s head. I was thinking of visiting an exotic place like Thailand or going on a beach trip in Maldives. Do you guys have any suggestions?

That’s all I got for now, ladies and gents. Please stay tuned in January as I plan to start the year with in-depth analysis of what happened to the comdolls in 2012. For now, enjoy Forex Gump’s awesome currency reviews!

I hope you have a wonderful holidays and a happy 2013!

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.