Trading Summary Week Ended 4th November 2022

20 Trades:

20 US 500 + 43 BPS.

19 long trades + 5 BPS.
1 short trades + 38 BPS.
19 intraday trades + 43 BPS.
No multi-day trades.

Total trades net + 43 BPS.
Net points + 16.

Return on account for the week + 0.49 % net.

P:L ratio 2.6:1.
Days traded: 5.
Longest trade duration: 350 min.
Shortest trade duration: < 1 min.
(All PNL expressed in basis points for the purpose of comparison.)

Thoughts

Another difficult week on the equity markets.

The main event of the week was the US Fed rate increase and press conference on Wednesday.

 

The equity markets initially rallied on the news of another 75 BPS cut (exactly what had been expected), then sold off heavily, especially after Powell started speaking.

 

I've noticed the markets often fall when he opens his mouth, maybe some trading programs do this automatically.

 

I think he has done a terrible job as Fed chair, allowing US inflation to get out of control they way it has.

 

I'm sure a decent computer algorithm could do a better job of setting interest rates, and would be far cheaper.

 

I didn't trade the Fed announcement.

Not a great week, although still positive. Again well short of my 2.5% benchmark, although I was distracted by having work done at home (a new hot water tank being fitted).

 

Still following the rules I outlined last week, so no trade entries after the US market open, no net short positions. I will continue like this and monitor my progress. 

 

Hoping for more opportunities next week.

Stay disciplined.
Stay focussed.
Stay humble.