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 certain result here could alter the euro/dollar chart but may also have implications for stirling.

During such times, brokers tend to increase spreads. Which is fine if average bar size increases, but not so good, as is quite often the case, if they do not.

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

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

I feel, however, that true trading confidence comes from good 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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