Thursday - 9 June 2016

Hoping that crude oil and loonie fall today so that we can further salvage the damaged trading account. We have 4 lots long open now towards the 1.2780 and 1.2790s. The very survival of the trading account is at stake (and at some level our financial survival!). Yes, crude did fall in early London briefly and then nicely in NY and so we finally got some breathing space and can do fresh trades All in $/CAD. Some how ended the day at +$70. So the damage is the $2K sustained yesterday. And so Ghawar 5's equity slumps from $6.3K to $4.3K. And now we have the 3 lots open that we need to try to see through towards $5K or $5.5K ideally. Then we can continue to try to repair the trading account equity towards the initial capital of $6.3K next week. Tomorrow aside from crude oil of course, will be the Canadian jobs report for May. If the number disappoints, then there is a good chance we come out of this.

Wednesday - 8 June 2016

So today would be all about trying to salvage the situation in the aftermath of the disaster yesterday in the NY session where basic, fundamental rules were broken, all triggered by jumping in too early in NY am. Crude oil continued to surge higher and we saw it easily trade above $51! That would mean a higher C$ and surely we saw loonie soar all the way to 1.2654 in early NY today! Remember our initial one lot entry long at 1.2794! and then the averaging continued in ridiculous fashion in the 1.2750 to 1.2780s! It was painful and frustrating to be stuck in sick trades like this and the market would just not move in our favour! And must have seen EQ slump towards $1,100! Yes, after starting out with $6,300 on Tuesday here we were on Wednesday with $1,100 and that too AFTER seeing EQ = $7,300 or so in the first few hours since starting Ghawar 5. And there was all kinds of chaos and panic as the realization of the dire financial situation took hold. How do we raise another $13,000? Who do we approach? THIS WAS NO WAY TO TRADE! Somehow survived and reduced the notionals and took heavy losses in the process. Ended the day with $2,000 in losses and so EQ = $5K or so and after MTM it was hovering between $1,300 and $1,800 for the most part I think. Horrible situation to be in but this is what happens when you break the rules! Totally cornered and boxed in, couldn't obviously do any other trades and stuck with these sick loonie positions Let's see if we can survive and pull it off. Let's see if tomorrow crude oil retraces and loonie retraces. Until then we just simply can't do anything. And know this: if crude oil continues to surge higher and loonie too, then we are looking at account blow up scenario!

7 June 2016 - Tuesday

Welcome Ghawar 5! Objective is to get $500 in profits during the trading day. EQ = 6,358.01 Sd = 558 EQmin = 5,800 A quick $213 to start us off in the Asian session. Aussie trades. Down marginally to $211 as attempted quick scalps in cable didn't turn out the way we had hoped. But no harm done. Objective will be to firmly maintain the good start we have had and not to lose our way when London kicks in. $277 now as we quickly pull off the scalp we wanted in cable. Got it within seconds. So brilliant start here. Remember, trading is hard and you would do very well just to get to your daily target. Fantastic London session. Steadily scalped throughout the session. Lots of GBP scalp trades where entries and exits were rapidly done and unnecessary risks avoided as cable was trading very slippery, moving up and down in rapid motion. It was all cable with very little loonie thrown in. We built the session profits steadily: $323, then $361, $400, $450, $514, $553, $$607, $644, $722, $748, $806, $917. Right as NY was coming in we did quick trades in CHF/JPY, EUR/CAD and EUR/NZD - closed them way too quickly but it was early NY and a good nest egg had been accumulated for the day. Didn't do much in the NY session: an AUD/NZD trade paid off around $50 Had one lot long in USD/CAD but it wasn't really going anywhere. Held for more than 2 hours and then of course started adding to that! End result is a catastrophe!: at 2:30pm EST we are sitting at an MTM of -$1,067 with 8 lots long! Total accumulated profit = $962! Once again got carried away and did the hard part of getting to $900 in profits but then got stumped on the easy part of preserving it by holding on to C$ positions and adding to them unnecessarily and so in just 20 to 25 pips move in C$ managed to drag equity down considerably and wipe out the entire day's profits with that heavily negative MTM! Ridiculous! $900 in profits not enough for you! Desperation. Need more desperately! Doesn't help! Stop it! End result: extraordinary start that yielded $927 by early NY ruined by going long in USD/CAD in early NY. Then kept adding to it and crude oil kept surging breaking the psychological $50 mark and so the MTM kept deteriorating. The attempted averaging throughout NY session meant that "n" was out of control and unstable. The loonie ended up as the champion of the day and we closed the day deep in the red in terms of MTM. Lessons Learnt: 1. Preserve/Protect/Defend profits! Everest analogy. 2. Jumping in too soon in early NY and not having a solid exit plan in terms of a tight stop loss in H1 of sessions 3. Sd not implemented. It was defined but not implemented 4. Getting too carried away with the K model instead of sticking to the proper Q/K model! 5. Negative sentiments that were allowed to go beserck: stubbornness, frustration, desperation 6. Losing the trading capital , trading equity focus So closing with day in utter astonishment and disappointment. Its the same dreaded self-sabotage. Made $917 by early NY but then proceeded to blow that all up in NY by jumping in too soon in a 1 lot USD/CAD long when oil prices were clearly rising and then not having a proper exit plan. Ended up averaging and the market kept going against us in NY. End result a complete disaster.