Back to Black...sort of

It's been a while since I've updated the blog with actual trading results. It's mostly been because of nothing really interesting happening.

However, something interesting has been happening since the new year. I have reluctantly stayed in the game with a small account (I think I started the year w/ ~$2000). Not to channel Amy Winehouse here (rest her soul), but I keep on going into the Red and then Back to Black. And the swings have been pretty wild. The account has ranged from ~$450 to ~$4500 in the past 5 weeks, with it currently sitting under $1000.

Not just that - but I've been able to repeat this numerous times! I'm astounded every time I take what appears to be a situation where all hope might be lost and convert it into a sizable account, then go back to square one.

What makes these swings interesting is my self-diagnosis of my own mentality and temperament with which I've made trades to both recover and then plunge into the depths of loss-land. They've made me realize just how much money management and patience play a role in trading (such as being willing to actively not do anything at all). In fact, being able to choose good trades is a given. Without that, all hope is lost. However, all hope is predictably lost as well if you err from your own money management and trading rules.

How long will I be range-bound before I finally release myself of whatever it is that's causing me this account ceiling? It's clearly not the market, but totally controllable through my own trading characteristics. That's actually both a very powerful conclusion - and oddly enough actually adds to my "quiet confidence" in realizing that it's not about capturing the hot trade/opportunity of the moment, but simply establishing practices that will be sustainable for the long-term.

Sort of like realizing that I know how to fish, even though I currently may not have many fish in the basket...