Trading Trail #24: No Worries!
Dec 16, 2011 at 6:35 pm in Trading Diary by
The value of the ‘Trading Trail’ position trading portfolio is now down to little more than £600 (from an initial cash balance of £1000) and so you might wonder: am I worried?
The answer is ‘no’, but not because I think it will turn around any time soon. It’s because I know that if ever it does turnaround convincingly then the upside potential is massively bigger than the downside potential. And if it doesn’t, I don’t exactly have my life savings on the line so I’ll live to try again.
I draw a mental picture in my mind of a spring or a piece of elastic that I’m pulling backwards rather like a crossbow or a catapult. When it finally shoots forward, it will do so long and far with tremendous force… providing the elastic doesn’t snap first! I’ve illustrated my mental picture with the following handy graphic 😉
Tony Loton is a private trader, and author of the book “Position Trading” (Second Edition) published by LOTONtech.