Diversification

Apologies for the long absence from blogging, I was wrecked with an unbelievably potent virus after my last post that left me bedridden for 4 days. (I’ve come to discover that when your sister catches a cold in a foreign country, RUN). I’ve also just recently arrived in the amazing city of London! (am here for a year to do my Masters program at LSE) Still trying to settle in, but i’ll be sure to update more when I do. – School starts on Friday, urk.

An update on trading so far, things have been going pretty nicely. I’m starting to see some of the benefits of diversification, especially when it comes to big contracts. While crude oil and the S&P were having bullish runs, my system jumped into TNotes just when the stock market was exuberant. I was reluctant to go long TNotes, but my system was right – soon after, the stock markets tanked and Notes jumped. It was almost uncanny.

Of course, not all trades have been profitable. The system went long the S&P yesterday, which proceeded to tumble 28 points in a day. I exited at my initial stop-loss point of $1400, but it could have been a lot worse. Again, another reminder of the importance of stops. It was a good thing that my TNote trade (again – diversification!) more than made up for that drastic loss. My forex trades, however, seem to be losing money in small amounts. Both the USD/SGD and the EUR/JPY have not been trending for the past month – I suspect they are being manipulated. I suppose that this is one of those non-trending regimes that my system will have to ride through.

All in all, so far I’m up by a little bit (partly in part from accidental profits from the mistaken crude oil trade I did 2 weeks ago, and from a copper trade that my dad accidentally entered). I need to be patient and allow the system to do its work. So far, I’ve been pretty good in following my system’s instructions. Let’s hope I stay this way.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s