My brief trading journal on Nikkei 225; what can you learn?
I posted my thoughts on #nikkei225 including some#macrothoughts. Pls see all the previous postings below (scroll all the way down). Also included a recent tweet stating my positions and entries in #nikkei225
Today school starts, back in business with some Nikkei shorts at 18350 and 18120. Key event this week #FOMC. Will Fed raise rate?
— TerraSeeds FX Tflow® (@terraseeds) September 14, 2015
Trade management steps
I just want to share, that I’m not an invincible trader. Like many of you, I’m stopped out on my trades. However, 2 things which I always do and would like to share with you:
1. Maintain a clear view and check through big picture even after being stopped. If need to, enter the trade again after checking through big picture and high timeframe like week/month. But always ask, is it worth to jump again on the same one, or there’s a bigger forest out there?
2. Carefully plan your entry and exit strategy, as well as trade management. There are levels which I guessed, hoped that it will come through. However, I’m also afraid that I be wrong. So I always err on the careful side. I set some of the trades into break even or with profit. Yes I earned lesser. But if I’m wrong, I lose less too. I always tell myself, since my method works over time and across so many instruments and markets, why do I need to rush?
See these pictures of my entry and trade management (not a detailed one) into #nikkei225
Never let a winning position turned into loss; neither give up too easily (Updated on 17 Sep 3.21pm)
These are 2 conflicting ideals, isn’t it? It is always difficult to see profit turned loss but if we subject to the fluctuations in market, we might lose sight of the big picture.
In another post, where I wrote about S&P500 and that the current movement is just a retracement due to short covering and retrace higher to short, I must admit that such retracement is always ugly especially when you have an existing short position already.
Let’s go back to my Nikkei position.
I have reduced my Nikkei short positions to minimum ahead of the coming FOMC meeting tonight.
I don’t really run away from a trade, but for nikkei, it was after completion of this mini base that I decided to reduce position. I covered my shorts with a slight win. Going forward, if Nikkei is to spike up, my other positions would be at a loss, thus the overall position that I built will end up in a loss too. However, I will never let my loss harm the overall position and overall win.
Let see if 17300 comes true.