Trading Journal Update - 15.03.2021
The trading journal series died down a little since January, but now that trading is happening, it's time for an update. As much as I wanted to start earlier this year, I did no trading until last week. The reasons behind this inactive period are - I was focusing on improving the website, learning more about marketing, seo and design. I had some expenses which I wanted to clear before starting again. Also doing more research on data and coding with python, google sheets and basic backtests on tradingview occupied my time. Forgot to mention that I joined a new business venture, and if all of the above is not enough for you, I started mentoring a trader about 3 weeks ago.
I did two trades this week - long Nasdaq and long Gold.
As the new stimulus bill was approved in the US, the Nasdaq was behind other US indices. Most media explained this as a rotation into value. Given the current conditions, on Monday I decided to go long the Nasdaq buying at 12484.80 with a stop loss below the recent lows (SL = 12100ish). My thinking was that it could reach 13000 within a few days. The trade went straight into my direction and I was up a few hundred points within hours. Later in the day, the index started retracing and it was close to my entry point. This made me change my mind and I closed the trade at scratch for a very small win. Looking at the trade in hindsight, I should have kept it on. I was risking less than 2% of my account and the gain would have been decent. But as we know the best traders are hindsight traders and overall I can't complain for a trade which didn't lose me money.
I bought Gold on Tuesday 9 March - It rebounded in a strong manner from it's recent lows. I bought at 1706 and closed the trade today at 1726 which locked a 1% gain for my account. Could it go higher? I think it's possible, but I wanted to de-risk the trade and lock in some profit.
I am happy with how the trading this year has started - I am up more than 1% in a week. It could be better, but it also could be worse. This week I will be monitoring Oil for possible short entry somewhere close to recent highs.
I will publish this trading journal weekly review once a week - every Sunday.