Happy New Year

Firstly, let me wish you all a happy and very prosperous 2010 and thanks to those who have commented recently. I'll try and respond to those over the weekend.

I've had an excellent few days off - nearly a week in fact - including a great day on the slopes of Glenshee on New Year's day. The snow at the Scottish ski centres is among the best I've seen it for some time. Well worth a visit, assuming the roads aren't blocked of course.

With my daughter back at school, Christmas, New Year and my birthday all out of the way, it is, unfortunately, time to get back to the grind. I've already had a little nibble at the dogs yesterday, but with the weather decimating the horse racing card, there seems to be very small pickings at the moment.

As things are quiet just now, I've been having a good think about my trading recently. I've only had one decent month since last spring, with November and December being particularly poor.

One of the things that I have been aware of, and which I must address, is the frequency with which I will enter a horse trade, immediately bale out when it goes against me, only for it to return and go past my original position into what would have been profit. This has been a source of frustration for some time and, as I'm sure you are well aware, frustration can lead to bad decisions.

I'm not a great one for making New Year resolutions because, like most people, I don't keep them. but in this case it is a necessity. I must learn to have the courage of my convictions. So, with the horse racing at least, I resolve to hold my position for a significantly longer period than I do now and let the natural ebb and flow of the market do its thing.

I'll obviously start off with relatively small stakes - £20 or so should be enough. The money is not important in this exercise. It's all about getting the right mindset and the emotions under control. This is important as I find the on-going lack of progress in the horse racing markets spills over into other areas.

I have had a long term ultimate aim of making £5 per race. It's doesn't sound much does it? I've certainly never managed to get anywhere near that, though there has been the odd glimpse. Clearly, it will take muck larger stakes than £20 to achieve that target. For now though, the target must be to find that illusive courage.

Oh, I'm off to see the Wizard, the wonderful Wizard of Oz....

2 comments:

Robin said...

Hi Alistair,
Happy new year to you.As a relative newbie to horse trading,I find myself in exactly the same dillema as yourself.I find 2 things to be helpful,a: set yourself a mental stoploss/getout of a max loss,say 2,3 or 5 ticks,whatever suits you and the market volatility,and b:the refesh rate on evolution is so good you can "see" how the market is trading and decide if the market going against you is "noise" or has the mood changed and you need to get out.Also the tick by tick trading black lines chart on evolution has helped me "see" market direction on the dogs and make successful 3 or 5 tick trades.Keep going you WILL get there.
regards
Robin

The Millionaire Fund said...

Good luck with the new years resolution Al, I've already broken a few of mine :)

With the reduced stakes try not to overtrade the markets though. £50 @ 11 laid off at 10 will get your £5 from the market. There's only so many times we can spot moves in the market and continually going back increases the chance of getting it wrong and throwing any profits away. I'd much rather go in big once I've identified my entry point rather than trying to get the moves in dribs and drabs. If another opportunty comes along by all means go back in but don't overtrade for the sake of being involved or just cos you're already green.