Lesson 3 Chapter 1
I took a break during the holiday season (2 weeks leading into Christmas and the New Year) and spent a considerable amount of time away from the business as well as some much needed quality time with family and friends. And while I LOVE the trading business, it is always good to get away and get refocused on the year to come.
Having said that, I did not have much time (or energy) to continue to post during the holiday period. Like I said, I did all that I could to stay away from the day to day “grind” that is associated with running the business of The Oil Trading Group.
Recap of 1 Month of Trading
The last day that I traded, prior to the end of the year was December 18th. You can see from that day why I like to take the holiday period off from trading. It was an ugly day and that is often times what happens during holiday trading. Additionally, this was the last day of the contract rollover and these days too are challenging.
Having said that, I was still positive 108 ticks during the holiday trading period.
Is this Good or Bad?
My philosophy is that ANYTIME you are positive it is a good thing (by the way it was positive $1,000 on trading 2 contracts).
Trading during the end of year holiday period can be some of the most challenging trading times of the year. You are constantly faced with illiquid moves and low participation. Couple that with contract expiration ( a notoriously difficult time to trade under normal conditions) and you can see why I was VERY pleased to escape the holiday cycle +108 ticks.
Starting a New Combine
Beginning January 4th, I started a new TST $150k combine. Why did I do this you ask? Let me explain.
I wanted to spend a minute (like we are doing in this post) discussing the challenges faced when trading during the ‘end of year” holiday season.
The bottom line here is this. I am not doing myself any favors by not continuing this current TST combine. Essentially I am starting over from scratch and I don’t really have to do that. This is a continuous combine and I could just keep marching along trading this combine. However, what I wanted to show you is the ups and downs to trading a combine during the holiday period.
Also, I am going to be rolling out some new concepts in early January of 2016 and I wanted to have a “fresh” combine to show you the advantages to trading these concepts.
In closing, the trading completed, during the lead into the holiday period, was choppy and on some day arduous. Yet, we still were able to come out of this period with a profit!
The Oil Trading Group. (“OTG”) does not hold itself out as a Commodity Trading Advisor (“CTA”). Given this representation, all information and material provided by OTG is for educational purposes only and should not be considered specific investment advice.
Trading performance displayed herein is hypothetical. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance trading results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.
Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones' financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not indicative of future results.