"Optimism means expecting the best, but confidence means knowing how to handle the worst" - Max Gunther
We have taken another hit for the week as our profit continued to head south. I am still holding long 1 Topix against short 2 Nikkei contracts with a paper loss of around S$2,000.00. I did not expect the Tpx/Nk spread to open up so wide in just 2 trading days from +40 pts to a low of -360 pts. I was caught off guard with such a big move but was lucky to just hold a small position in this special account.
I suffered a much heavier losses in my own trading account as I was holding a much bigger position. Over confidence and wrong assessment of the market wreck havoc in my trading for the week. Though I have not fully recover from my operation, not being fighting fit has cost me dearly, but no excuses, I have made the wrong call.
Our profit to date for the special account has drop to S$15,806.00. It's lucky that I have been conservative, if I have gone in full margin for the Tpx/Nk position, it would have wipe off all the profits we have accumulated for the past few months. Making money is so difficult, so much time and effort taken to slowly built it up but losing money is so easy once you are extremely confident and just a little stubborn.