I had a shock this week. At the beginning of the eyar I have asked a few of my trading pals how they had been doing so far. Most of them have far more experience than I do in trading and I was curious. I believe I already told in one of my posts the type of answers I received – and so many excuses. Well, this week most of them took a step further. They decided that the Uk market doesn’t work and they have decided to move on, from what I could gather, to US indices and Forex. Ha ha. Hmmm. What is going to happen now?
Well I am no quitter. For one good reason. I think that the UK market is slower and moves less than the US market. So it is quite good when you are a learner. Another thing is that I trust that when you have had enough experience, you should know how to play, what to play, whatever happens. We are not supposed to be punting. We mainly use technical analysis. Knowing our technicals is one thing – that most of us are far to do properly. Mastering the psychology is another thing- and it is well know that this is the most important point.
Saying that The UK market doesn’t work is silly. If it didn’t nobody would be playing it. To say that we haven’t understood all the finesses and the techniques of the UK market and that our strategies may need to be corrected is another thing. I have ask about backtesting. How long do people stay in their trades? What are the targets, the exit points ( and reasons), do they always enter their trades at the right prices, can they pinpoint what goes wrong in their trades after 3 months, what should be refined, changed, amended?
believe it or not I didn’t receive any answer. I still see though some guys choosing to go long on trades that have the 10, 20, 50 and 200 EMAs above their head or to jump on a breakout of a round number such as 500 and wondering why they lost their shirts. I still see gals asking if there is anything to play when ALL the markets of the world are in the red and the UK is opening lower with a bunch of bad news in its sleeve ( how can anyone believe that inflation is contained or that loans are going to be reimbursed, I have no idea. We live in Wonderland here and newspapers are just good to light a nice fire).
So I kept my mouth shut and I do my trading alone now. It feels lonely. But in a sense I feel free as there is no one out there who knows what I am doing.
I will play the Dow, that’s for sure. I have just finished reading John Carter’s book ( ” Mastering the trade” ) and during the Easter holiday I am planning to study the set ups more closely. I will one day move on to FX too – once I know what I am doing in other departments. But I will not quit the UK market as long as I am not mastering it. I do not like to be wrong.
As for my pals, well, I wish them good luck of course, wholeheartedly. I wish I could also warn them that there is no such thing as the holy Grail in trading and that if they haven’t learned from their mistakes, they will just repeat them over and over until they drop …trading. It seems to be rude to say such a thing to anybody, so I shut up.
And I keep learning.

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