Wednesday, August 18, 2010
Noet Z'Hin Lil'Avinsin
"Boldly stride the doomed." - Drizzt Do'Urden
Ok, time to confess to some hypocrisy. I know I am shooting for 4% to 6% weekly, but I got so excited with last month's 58% performance that I really wanted to do it again. However, increased volatility and two margin calls in two weeks are making it real easy for me to come back to my senses and to the realm of reasonable expectations. Is striding boldly, instead of cautiously, into August dooming my account?
Early in this month's first week, a margin call put me down 15%. By the end of the second week, I had recovered the 15% loss and was actually up another 14%. I figured if I could repeat this in the upcoming and last two weeks of August, I would post another incredible 50%+ performance in one month. However, this past Tuesday I got a second margin call that erased last week's profits and put me up just a mere 0.28% for the month of August.
I modified my strategy. Up until last Tuesday I was dipping into probably four times the margin I should be using for the size of my account. Also, I think I may have failed to properly calculate the trading range of the EurUsd for this week. Hence, ran out of margin before turning a profit. As of Tuesday, I am only dipping into three times the amount of margin I should be using. Are these bold or foolish strides? Is there a difference when they both lead to the same destination?
Guess we'll find out Friday at 4:00 p.m.