Trade Ideas

Post-mortem of 2012 trading year; there is no substitute for hard work

Last Christmas I took off with my family up to the farm for 3 quiet weeks, where I spent all of my time either hitting golf balls or studying the FX market. I looked at charts, fundamentals, flows, positioning, and basically anything else I could get my hands on. I formulated trading strategies based on these 3 weeks worth of ‘work’. The result of this was that I had very strong convictions about directions and ranges ensuring that I had confidence to take on reasonable risk when my levels were reached. This meant that I had an excellent trading period Jan-Apr (and my handicap fell to 1).

Then I took 6 weeks off for a holiday to Europe, spending time travelling and visiting friends and family, and I did not study the market at all during this period. The result of this was that since then I have really struggled to find any rhythm in my trading (and my conviction and confidence levels have been low). I’ve done well I think to be only facing a very small loss for the last 5 months.

Conclusion: For me at least there is no substitute for hard work. I need to figure out my own theories and strategies based on solid evidence and then implement my trading based on this work. The stupid thing is that its really not work at all, I love doing it, so it will be back to basics for me over the next two weeks.

I will be on-line occasionally over the next fortnight, certainly I will update the site when anything happens in the market, and it will be back to normal on January 7th.

  1. All the best for the holidays Sean, hope you have a great time with the family.
    I heartily endorse what you have written. I too started trading better after I spent a month doing really deep technical research in June – July this year. Based on this work I figured out a system based on chart patterns that works for me. The main reason it works compared to before is because my research and hard work have given me the confidence to enter, hold and exit trades as dictated by my system rules. The minute I abandon the fruits of my research for some ‘gut-feel’ trades I don’t do well. Like you, I too enjoy the FX market, it doesn’t feel like work. The only downside to forex markets is that nobody around me understands what I am doing, they think I’m just wasting time at the computer. Social life is badly affected, especially with Australian hours.
    Anyway, I’m looking forward to new peaks in 2013!

    1. Hi ZenFX, you’ve hit the nail on the head. Nobody around me understands what Im doing. They all just think I enjoy getting a moon tan in front of my 6 monitors every night.

  2. Thanks for your insights and discipline Sean. I rank discovering your work one of the true gems of 2012.

    Here’s to new beginnings in 2013 – especially the new Mayan calendar! 😉

  3. Have a gret holiday time, Sean. You truly did a great job by sharing information open-heatedly with all of us. May Santa reward you abundantly :))

  4. Marry Xmass and happy all the holidays… I am still impressed by amount of work you are putting here and your attitude. All the best in a New Year. It was some ancient dude who said that hard training makes war easy, so planning ahead makes all the sense in the world. Cheers.

  5. this is the best article I have read for months now. I agree. no substitute for hardwork. even i lost in the last 4 months. crazy months they were. But thats forex and you have to accept it as it is.

    Merry Christmas and Happy New Years

  6. Happy Holidays and good luck for 2013 to you Sean and all participants.

    It was my very first year and I had ups and downs and I will be finishing at break even!!!!!!!!!!!!!!

    Hats off to you Sean. There were times I almost thought: “this is not for me” and was about to give up but couple of things kept me going.

    One of which was a through advice and some words of encouragement from Sean.

    Take care.

  7. Good evening Sean,

    Excellent post however I have problem with this latter, my wife 😉 ! I am not sure that she would accept if i spent all my time on the FX market during the holiday ;-). Of course, i will take my laptop with some good excuses, i am still in on EUR/GBP ;-).

    Merry Xmas and happy new year to you. Thanks for all, your precious advice and help. See you in the new year.

    Last word : Today, it’s winter solstice day and tomorrow, the days will begin to lengthen (+3s) 🙂

  8. I think you deserved the break but you got bugged by Europe as everyone else!

    Avoid Europe and get the family to come to Kenya!!

    Merry Christmas and Happy New Year to you and your family!

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