Wow, I’ve not blogged for a long time… but that doesn’t mean I’ve given up trading…. on the contrary, I’m spending more time trading and less time surfing the net, blogging etc etc… In fact, I’ve also significantly reduced my tuition hours so that… well, I believe I reduced my work hours so that I can spend more time learning how to trade… but maybe I am just lazy… :-p
Anyway, I was pleasantly surprise to see that this blog still has readers… hmmm… must say a big thanks to those who stop by….
Here’s an update of what I’ve been doing since my disappearance from cyberspace… Like I mentioned in my previous post, I’m starting to sell options spreads… results have been ok so far…
I thought options selling would be almost ’emotionless’ for me, as I can sell with a buffer and do not need to decide when to close my positions, which was and IS STILL my greatest weakness. I always used to close my positions out of fear, for instance when the stock moved merely $1 away from me, or when I had only a small profit.
Options selling is definitely a lot easier for me, because I am mathematically trained, and I love the statistical advantage I get by selling. However, occasionally, I still managed to let my fear grip me and ended up losing a portion of my profits….Nonetheless, because the odds are strongly in my favor, I can still easily make money even with some wrong trades….
I’m also doing lots of research in forex trading… After programming numerous EAs, I’ve become increasingly disappointed with indicators-based systems… these systems tend to be less robust… highly dependent on market conditions and the parameters used….
Recently I’m exploring grid trading… like options selling, it’s mathematically based and thus clicks with me…. I’ve become convinced that trading should not be about predicting market direction… rather, it is just a statistical and psychological game…. after all, even the sage of ohama does not attempt to predict market direction… of course, that is my personal perception of the market… others may or may not agree with it… There is no need to argue if I’m right or wrong… what matters is just that it works for me… 🙂
Hope I can work out a statistically sound way to trade forex soon… will definitely update my ‘findings’ when that happens….
Good luck to all….