October, and it's lessons.

Hi all -

I have just finished going over my spreadsheets from last month, and what I found was truly surprising.

For starters, do yourself a favor and keep track of results per pair. It will really open your eyes to a lot of things. Not all pairs are a good match for you as a trader, I believe.

For example, I have always liked the NZD/USD pair. The Kiwi Dollar had been good to me. (So I thought.) After evaluating the last two months, it turns out that it's a loser for me. I know that the pair has been choppy lately, but I find that interesting to say the least. It has accounted for a total of 15% of losses in the last two months.

On the other hand, 35% of my profits have come from GBP/JPY. The Pound-Yen cross always made me extrememly nervous in the past. It can move at the speed of light, and the spread is high. However, you cannot argue with results. And the results say that it matches my personality. (I believe it is because you know if you are right or wrong fairly quick on this pair. The longest part of a trade for me is that "dead time" you get before you know if it is going to work or not.)

Something like 48% of my profits have come from the EUR/USD. I typically don't like this pair, if nothing else, because I keep thinking "It's too high, can it go higher?" Needless to say, I am trying not to ask that question anymore. (And I should know better.)

I also have learned I tend to try to be "different". That doesn't mean that I am shorting the Euro, it means that I am jacking around with the Kiwi. As I ponder these things, I learn that it is all a reflection on me as a person. I am an individual. Anyone who knows me will say that as well. Unfortunately, being individualistic isn't always an asset. Definitely not in trading at least!

The markets can teach you a lot about life. And yourself. All you have to do is listen.

Oh well, I lost 1% over the course of the month. Cheap damn lesson if you ask me.