What have I been up to this month? I have stopped pair trading completely and embarked on before the trade war started. Again. Training my psychology and temperament with a “never say die” attitude this time round. (So let me take back my previous conclusion in one of …) What have I achieved? Despite missing the early rally, I have managed to catch some late rallies. My “heroes” were Walt Disney and Monster Beverages. Pocketed some neat profits riding their uptrend and later got whipped out by the trailing stop during pull-back.
This time I traded with a different psychology and approach – ditched my “sure win” self-conviction when initiating positions, “played safe” by being more careful about margin of safety and degree of volatility, set trailing stops (when you take care of the downside, the upside will take care of itself), and minimizing the use of