Good morning. Hope all is well.
I know I have not been updating for a while now. This is due to a new trading idea that I have came up with and thereafter putting into use. I cannot explain the inner workings of my trading plan, but I can put through my thinking behind it.
Financial markets are not a sure thing by any standards. We have no way of predicting the direction in which it will go. If we could predict the direction, we will be very wealthy. It is very slow in making you a profit, but it is very quick in taking your hard-earned cash. It will not give you a set salary at the end of the month, but it will definitely give you sleepless nights at best. I know I cannot live with such uncertainty or with such incredible risks day in and day out. So what can I do to eleviate this proven fear? What can I do to ensure that I do not have sleepless nights?... Can I devise a trading plan which does not rely on the balance sheets of any country or any stock and does not rely on one of the biggest downfalls of any trader: emotions? Can I devise a trading plan which will not take any news/economic analysis/human fears into consideration? My thinking was that if I could work out a trading plan devoid of analysis of any kind...will I be able to be a successful, consistent profitable trader? Will I be able to profit from this very unpredictable world without giving thought to the direction in which the global economies are going?...I know that I have been only trading my theory for a few months now, but in my opinion, my results are quiet amazing and bang-on. Based on my forecasted calculations, I estimated that my drawdown will be about 30% of capital invested, which will then start to recover about 4 months later and then permanently be in the black 12 months after that, where my theory will yield about +/- 5% monthly profit on original capital invested. Today, 4 months into my theory testing and as calculated/predicted, my drawdown has been 28% of capital invested. Currently, I have recovered my losses to only 16% drawdown of capital invested {recovery is much earlier than forecasted}, and my calculations predict that I shall permanently be in the black 8-12 months from today.
I know that my theory will be debated, and that my consequential findings of my theory will be accepted. But this is what I expect and hope for. In order to make ourselves better, we have to accept healthy criticism and to then question how we can make ourselves better.
Happy investing
Zeena |
