Good trade management is key

Probably due to the US holiday, it was a slow market for the latter part of last week for the sterling/dollar pairing. The UK Autumn Statement had little effect.

This coming week has the anticipation of the Italian referendum. A particular result here could alter the euro/dollar chart but may also have implications for Stirling.

During such times, brokers tend to increase spreads.

A thought from my trading last week is that, as in any skill, confidence (not arrogance) plays a considerable part. I think faith in trading comes from profitability. Which in turn requires timely, decisive decisions.

Panicked, after the event, entries don’t count.

I feel, however, that real trading confidence comes from proper trade management; this, for my money, is more important than the ability to choose an entry.

I often find that in my own daily debrief, that any losses are the result of my trade management -rather than anything else.

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