The day starts off with a lot of promise. Promise that I’ll get a trade on the board, promise that I’ll win, promise that I’ll be a champ. That’s what we all want, right!
Armed with the trading system rules I’ve come up with, that are yet untested, I’m ready to trade live on a test appropriate small scale. See my introduction post for more information (click here) and sign up to my free newsletter for a copy of the full trading system.
I find that one of the great things about testing a system on a small scale live is that it allows you to iron out any practical issues the system may have. Trading live is a lot different than a trading plan in theory. Sometimes the best laid plans have issues that cause them to be difficult to trade. Testing live helps you identify those issues early on.
Trading a system needs to become automatic, much like driving a car. We want to follow the rules fast and instinctively, error free and taking action in a timely manner so as not to miss trades. Testing a system live also helps you get your skills and familiarity with the system developed early on.
This was one of those frustrating days when the system did not set up. Maybe I could have spared us all the trouble of producing the video. However, I think it’s important to show that there can be times when you just sit on the side-lines and get your patience tested. Taking trades without a plan is a recipe to nowhere good. You will have no reference to judge and improve the performance of yourself and the plan. I consider someone who takes trades without a plan as more gambling than trading.
Let’s evaluate what did happen:
What went right?
- I continuously looked for the trades in accordance with my trading plan. I did not see any trade setups that I missed.
- I felt well prepared, in that I was sufficiently knowledgeable about the system and was familiar enough to know what I was looking for especially considering it was my first day on the strategy.
- No practical issues arose, between the theory of the system and being able to execute it in a practical sense. I tested this when a pending order was entered in the market. The order wasn’t triggered.
What could be improved?
- Look for more ways to make money in the time spent trading to increase trading opportunities.
- Fix the inconsistency between the moving averages on the Heikin-Ashi and price charts. Change the price chart moving averages to EMA(3) and SMA(18).
What observations have you made?
We all come from different backgrounds and experiences, so please do share your thoughts in comments.
Please leave a comment below and click the like/share buttons
About the Author: I’m Rachel Hunter, TraderRach, a Forex Trader who helps traders achieve the life they love with forex. Be strategic and design your trading business for sustainable success and have fun! That’s my mission. Join many traders’ gaining the edge with “10 Powerful Lessons for Forex Trading Success” plus other goodies. Years of precious learning specially packaged up for you. My background before trading is as a Chartered Accountant and Chief Financial Officer. I know what it takes to make a trading business rock on. It would give me great pleasure to make a difference to your success.