Silly Way To Start The Month

Today's Results:
Horse Racing... 0.2% loss. New bank... £855.24

I was away on my weekly visit to a client so I only managed the evening session today. I traded like a complete pillock tonight. So much so, I'm struggling to understand how I managed to come away with a loss of only £1.32.

The evening started off pretty slowly with 3 out of the first 4 scratched for less than £1. The other one saw a reasonable profit, but nothing to write home about. Then came the 6:50 at Thirsk which screwed up my thinking and led directly to the ridiculous way I traded the rest of the night.

I was initially interested in 'Coleorton Choice' which was trading just above 3.00. I felt strongly that it was going to come in so I backed it with £120 @ 3.10. Sure enough, it started to shorten and I had an excellent opportunity to close out the trade a few ticks lower but I held on for more - and the market reversed. I managed to get out in dribs and drabs by the time it had drifted out to 3.60 and I was nearly £16 down!

Disgusted with myself, I nearly threw it in then, but I gathered my thoughts and noticed that 'Secret Venue' was on the way out. I managed to get on that and a minute later, I'd recovered nearly £11 and found myself £5.40 down for the race. But what annoyed me, and ruined my thinking for the rest of the session was, on switching back to 'Coleorton Choice', it had come in again, and sail past my original opening position and was sitting some 20 odd ticks lower.

I've mentioned this so many times on this blog, it is becoming boring. I am frequently losing out on big trades because I fail to have the courage of my convictions when the market turns against me soon after opening my position. I close out for a loss only for it to head off in the direction I predicted, past my original opening position into what would've been a profitable result. Very, very annoying.

What followed after this race was some of the worst trading I've ever done. Or at least, some of the worst opening positions I've ever taken.

With 8 races and only 3 losers one might question what all the fuss is about. Every one of those races saw me in a losing position. I was continually fighting to get myself back in profit, or at least scratched. I was making mistake after mistake: entering the market too early, not paying attention to the streaming graphs and relying too much on WOM which is pretty meaningless in the place market. Very messy.

So, 13 markets traded with 5 of them scratched for under £1 and 4 losers costing £17.40. With only a 0.2% reduction in the bank it is hardly a disaster but I wish I would learn to have faith in my judgment. Perhaps that makes it too much like gambling - and therein lies the problem. Who knows? There's always tomorrow.


Pete Thunder said...

Regarding the win market, perhaps you would like to see the following thread;
The chap nicknamed fairfranco conducted a successful experiment trading on the win markets. Even as he didn´t post many pointers regarding his way of trading, perhaps you could make more out of it than i did.
And regarding you earth shattering loss of 0.2% of your bank, i managed to lose 10% of mine on a "typical" error: I tried and gave chase to my loses. Two races went south on me and on both i tried to reverse some of the losing, only to see it grow. Was bad enough on the first race, and when noticed i stopped, but doing it again later is what makes me real mad. Regained my senses, let the lose run and managed to salvage some of the damage doing regular trades later on, not a single trade went near of what i lost on the two damned races, and if i had taken the loses i could have ended in little profit.
But after the war we are all generals, arent we?

Anthony said...

The markets zipping back against us only to turn in our favour once you've hung on to take a big loss is something that happens fairly often in horse trading imo. That's why you've got to keep your wits about you and be ready to act very quickly (I hope that doesn't sound patronising). If you don't use automated stop losses it can help to be ready to cut out at a price behind your entry point. That way you're almost certain to get most of your money matched and quite often, if you're quick enough you'll not lose very much at all. This gives you a chance to have another go when it hits the 3.60 point, in the situation you mention in your post.
Also, have you thought about trading out say 1/3 of your stake when it has initially moved in your favour? This gives you a little bonus to set against a possible loss, yet if it continues in your favour you've got 2/3 of it left to run. Easier said than done, mentally and physically but worth trying.

Alistair said...

Thanks for the comments guys, much appreciated.

I'll take a look at that link later Pete when I've got more time.

Anthony, you've raised a number of important points in your comments. If you don't mind, I'll address then in a separate posting later on this week as it is worth elaborating on them and how they effect me and my use of BinarSoft BDI.