A brand New Year, and a
conservative
start.
Readers
may recall that I went into
drawdown last month, for the first
time in over a year.
Japan had announced a fundamental
shift in their interest rate
policy, and this caused 10 days of
turmoil when viewed, perhaps
myopically, from the stand point
of my main systems. My
concern was that I didn't know how
long it would take the market to
absorb this information before
returning to 'normal' (whatever
that means!), or whether something had permanently
changed. As a consequence I
traded very conservatively during
the period waiting for the market
to become clearer.
As it
happened it seems the markets went
from chaotic, to simply confused,
and in retrospect I may have been
just a little too
conservative. Nonetheless, I
wanted to avoid digging a deficit
hole for myself and, so far, I
have managed to achieve this, by
returning a small profit for the
month.
I've never had a lot of
it in other areas of my life, but in trading, patience is a
virtue. There's plenty of
money to be made when your trading
systems are in sync with the
markets. When they are
not, one needs to protect one's
bank-roll.
