PERFORMANCE - We are down to the final days of the first year of the JKonFX unleveraged fund and I am pleased to announce the fund has put in performance of well over 30% for the year. We are going to be looking to offer additional opportunity to track performance more closely over the coming year and I will keep you posted over the coming weeks as things progress on this front. Looking back, I never forced any positions, always took my time and was never stressed. Trading with little to no leverage affords you this luxury and it is something that can not be said enough. While I certainly believe I have worked hard at analyzing markets and this has helped me to grow into a better trader over the years, there is no denying the fact that trading without the stress of leveraged positions makes the decision making process infinitely easier. Ultimately, you may not be hitting any home-runs, but you also significantly increase your chances for success over the long term.
SIDELINE TRADING - My goal with an unleveraged portfolio is always 10-15%, so it was great to see this benchmark smashed this year. I won't look to do anything differently over the course of the next twelve months and will continue to wait for the market to come to me. Quite often, this strategy translates into a lot of time on the sidelines, but I have found the most important trades are more often than not 'no trade at all.' The discipline of sitting back and waiting is not an easy discipline to master, but if you can do it, you are well on your way. The next time you resist the urge to take a position just because you are bored and are looking for action, give yourself a pat on the back and know you are moving in the right direction. Whatever would have happened with that trade is completely irrelevant.
STRATEGY - As far as the strategy for Tuesday is concerned, I had been looking to sell USDCAD but didn't get that 1.3180 entry I was looking for on Monday. We are into a new day now, so the trade changes a bit. But I will still look to sell, primarily on the basis this market is overbought and the even more extended and highly correlated OIL market is also well due for reversal. I will have to see how things play out and may now wait to sell above 1.3200. Stay tuned and keep an eye on the trade journal. Otherwise, I suspect Aussie could be a big mover on the day and my feeling is we could very well see this market push higher, as it too seems stretched at multi-year lows and due for correction. Aussie traders are taking in trade, retail sales and the RBA decision today.