FX Trading Over the Last Few Days
Over the last 4 days, i went back into fx and funded a tiny account.. it was really fun and intense and I thoroughly enjoyed while mentally shagged. While the objective is to make money and test my setups and to check if i manage to grapple the emotions side, it got the better of me again in the defining last few trades when i risk more than 7-10% for 3 trades after an EIT(buy became short) which I lost and panicked and elimanted all my gains for my last few days and I decided to call it a day after my balance went from -25% to +25% and then to BE. I did close to 50 trades for the last 4 days with a 60% accuracy of profitable trades and with that statistics , I expected myself to do much better than breaking even. I am rather fortunate that I didn't incur losses in the end(even though is a small account). Some take away for myself...
1) Risk management : If you can't handle risk, don't bother trade fx. Stick to your desired SL no matter. I don't have a harsh rule on having a favourable risk to reward as I believe that in FX, take what the market can give. Love to trail with profits and shifts to BE and I will continue to do that.
2) Emotionals : No revenge trading. Always regroup, think and talk to someone if u can after u got SL. My best winning streaks was a 13 consecutive winning trades in a single days during the 3 days period, mounting up to 200 over pips. But I remember during then, when I have close to 4-6 conseuctive wins, I keep reminding myself that I will become complacent as the streak continues and this reinforces the mental part of me to only trigger trade WHEN they is opportunity. I know that losses will eventually come and I will just need to treat them as any other losses which I did. I should have done a lot better by keeping my cool in the last few trades and I would have make back the money anyway. Lost it in the end.
3) Discipline : The best traders that I know only take trade when the signal is alerted. There are times that I try to squeeze out a signal and it fails, it adds up to the emotionals strain because you know what you had done and caused the losses. Even if you manage to escape with a winning trade, there will always be "another time" where you don't follow your trading rules.
4) Sizing : The sizings of my trades became bigger and bigger which I don't think that should be the case. This will lead the trader to fail 3) as they whack a higher trade to recuperate any potential losses. Trading is a game of probability and it is about churning the numbers and not about hitting a home run or jackpot. More good trades will eventually give you a higher EV and when I mean good trades, I mean sticking to the 4 key points, be it a good or losing trades.
1) Risk management : If you can't handle risk, don't bother trade fx. Stick to your desired SL no matter. I don't have a harsh rule on having a favourable risk to reward as I believe that in FX, take what the market can give. Love to trail with profits and shifts to BE and I will continue to do that.
2) Emotionals : No revenge trading. Always regroup, think and talk to someone if u can after u got SL. My best winning streaks was a 13 consecutive winning trades in a single days during the 3 days period, mounting up to 200 over pips. But I remember during then, when I have close to 4-6 conseuctive wins, I keep reminding myself that I will become complacent as the streak continues and this reinforces the mental part of me to only trigger trade WHEN they is opportunity. I know that losses will eventually come and I will just need to treat them as any other losses which I did. I should have done a lot better by keeping my cool in the last few trades and I would have make back the money anyway. Lost it in the end.
3) Discipline : The best traders that I know only take trade when the signal is alerted. There are times that I try to squeeze out a signal and it fails, it adds up to the emotionals strain because you know what you had done and caused the losses. Even if you manage to escape with a winning trade, there will always be "another time" where you don't follow your trading rules.
4) Sizing : The sizings of my trades became bigger and bigger which I don't think that should be the case. This will lead the trader to fail 3) as they whack a higher trade to recuperate any potential losses. Trading is a game of probability and it is about churning the numbers and not about hitting a home run or jackpot. More good trades will eventually give you a higher EV and when I mean good trades, I mean sticking to the 4 key points, be it a good or losing trades.
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