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This appears to happen from time to time on all internet discussion forums. Some people copy their post as they complete scanning and paste it into notepad just to be on the safe side. This is very useful for lengthier posts.Originally Posted by ;
Good luck with your trading!
Adding to a losing place is a sure way to blow out your account. Consider it this way - you will get your largest size on when the market has shown you, your initial place was wrong. So you are taking a huge risk just to come out at break-even.
Develope rules in your trading. Take Profit levels and prevent loss levels set up at all times.
I believe that it might be time to re-start the challenge from the start. Simply take the lessons you've learned that this time and don't repeate the same mistakes.
Hello Jeremy,
I've decided to have more control over my bad habits, such as greed, and impatient, expecting too much from a commerce. So the coming weeks I'm focusing on this and less on what I will make (or reduction ).
I also want to unveil my trading program.
Once I feel comfortable with all, I'll begin a new diary, but without the goal to acquire an amount of cash after several days. My goal is trying to be consistent in my profits.
Regards
I believe your diary was pretty intriguing. I have only a bit of information for you. Hopefully you do not mind me sharing what I think.
Try thinking concerning% as opposed to $. However you look at it, it's about %. I'm unsure how you happen to be trading and how much you were risking but I will provide you an example of my new trading plan that I'll put into position in January when I come back to live trading.
I love to scalp because it matches my character very well. I always think in % so I will explain in that issue.
If you start the new year off with $1k and may average 2% per day (see I said average as you will have losing days) for the entire year of 2011, you will require your $1k to over $100k by the end of 2011. Now before you or anybody else says that is impossible allow me to state what I say to all situations such as this. . .just because you haven't completed it or do not know somebody who has. . .does not mean it's not possible.
So to conserve the argument, let's say you don't think you can make that type of cash in one year. Why don't you take for it and should you fall short, let's say you end up with $25k in your trading account. . .are you going to be upset about that? Would you get angry that you did not make it to $100k but you ended up taking your $1k to $25k...I do not believe you'd be upset about that.
Now here is how I'm going to trade. I risk 3% per trade. Because I scalp and use a stop loss of 10 pips, I'm comfortable with risking 3% per trade. Remember I understand what 2% per day on average could do for you so I'm okay if after some wins and wins within a dayI end up making 2%. Once I start investing in January, I'll start with $1k. So at that point 2% will probably be 20 profit for me and I'm fine with this. Trading is not a sprint, it's a marathon.
I also have a stopping place if I have a fantastic trading day. I'm not sure whether you already do or if you would like to trade for a living but trading is a job and ought to be handled as such. If you operate a 9-5, you then work a 9-5. You know that you are supposed to be to work by 9am and you also get to leave no earlier than 5pm. Treat trading exactly the same manner. First off, avoid the less volatile times. For me, I trade the London session, US session and the beginning of the Asian session. My stopping purpose for your afternoon is 9% profit. I know I won't hit that everyday but I've hit it a couple of times each week on multiple weeks.
I do not attempt to make 9 percent in a single sitting. I risk 3% (10 pips) each trade. So I understand that I want to make 30 pips in a single day to have a profit of 9%. What I do is I split my trading up into sessions. When I'm up 3% in a single session, I stopped trading this session. I go spend some time with my family or take a rest or go for a run to settle down a little. Trading can be very stressful if you're looking at the screen all day long. So my plan is to make 3% in 3 distinct session and then gives me my 9% for the day and I'm done. . .no matter what.
Occasionally, I use a 5 pip take profit anda 10 pip stop loss. I know that sounds crazy but for me it works. I'm in a position to make 5 pips consistently. I have learned how to read the incline in my MACD indior and I utilize Heiken I to assist me out. I want 6 transactions to profit at 5 pips eac to make my 30 pips and I'm done for the day at my maximum target point. I always keep my two% bubble over my mind though. Don't believe you want 15-20% per day to be prosperous in this business.
Most people in this business fail because they do not possess the patience to stick it out and take it slow. Playing the lottery is how you get rich quick. . .not forex trading.
I know this article is long and I'm sorry for this. I only wanted to share my ideas because it's clear you have a method that wins consistently for you. Your losses have been from the own greed. You had many days when you were in profit 10-15% or more. If you have a method that could do this for you, pick a stopping point lower than that and live to fight another day. Bear in mind, consistency is the name of the sport in trading. You can be up and down all over the place but at the close of the day odds are you will probably be right where you began. Create a plan, stick to it and observe how your account will expand at a nice steady pace.
You may have losing days but pick an amount for those days and stick with it as well. I could be wrong but it seems as if you're an aggressive trader. If I'm right, select a place like 10% and stay with it. Say to yourself that in the event that you lose 10% of your account balance in a day, you may quit trading daily.
It may be a fantastic trader and make great money in this business but you have to respect the market and the results will come. Treat trading such as a boxing game. Two heavyweights are not likely to step in the ring without having trained for 6-8 months rather than having watched film on each other to learn their trends. Treat your trading exactly the exact same manner. Do your homework about what it is you are good at and what you suck at. Whatever you suck at, remove it. Don't waste your time trying to improve it. The things you're good in, and continue to operate on these and so you can become great at them.
I didn't start trading consistently profitable until I stuck to one thing and one thing only. I stopped trying to trade long term, fibs, pullbacks, pivots and all that. I found my power, which was scalping and that is all I really do. I don't need to be great at 10 items to earn money in this business, I only need to be strong at 1. Same with you.
Hopefully I managed to shed some light on your situation and struggles. Trust me, we all are more than once. Like someone said in a prior article, start your journey over but do not worry about a deadline. A timeline will only make you hurry, which will only take you down the wrong road. Produce a plan, follow it and watch you account grow consistently.
Good Luck
Hello Scalp,
Thanks for your article.
There are indeed a couple of things you mentioned, which I find usefull.
Especially to observe things% shrewd, and ofcourse eliminate the deadline.
At the moment I am rewriting my tradingplan and I will use some of your thoughts, like cease trading on a day when a specific % loss has been reached.
For myself I was thinking about trading through a period of the day and to stop at a specific quantity of profit.
Thanks again.
I am glad you understand a few of the points I was trying to create. Except for this being so long. I think you are going to do just fine in this business as soon as you receive a few things in check.
I went back and looked in the results and you could be making a very consistent living in this business when you get those problems in check. In your winning days, you had very wonderful% profits. That's what it is all about.
I have a spreadsheet that I believe would aid you with staying on track with your program but since I am a Junior Member, the file is too big. When I can send bigger documents, I will talk with you or in the event you would enjoy it , just send me an email and I shall send it to you through email.
Hopefully you will share your trading egy here at your thread. I'd love to see what you think of as the begininng steps to you attaining your targets.
Another concept that I wish to share is even though we're trading Forex, which is a larger market than stocks, try to think in terms of stocks.
This will touch on the percent conversation again but it will be brief. When I'm trading, I believe in terms of stocks and not Forex. What I mean by that is, when a stock moves 1 or 2 percent within a day, that's an excellent, great, fantastic day for a stock. Most stocks move less than 1 percent each day. Should they move anything more than this, it is a major move for this day.
Today in Forex 1 percent daily is extremely straightforward and can be reached very consistently. I will not say it is easy because I don't want anyone to get the wrong idea, but it is something one can perform always when they put in the attempt.
Now consider all of the stories that you may have seen or read about those who have built a wonderful financial situation for themselves trading stocks. Now keep in mind that stocks generally move less than 1 percent daily but consider how many people have made fine livings trading stocks.
Now in Forex, 1 percent comes so quickly you miss it many times. For instance, I only made 10 pips on a brief on E/U (the only pair I exchange ) and that's equal to 3% for me. So in the event that you understand that good livings have been created trading stocks and percent shrewd, they don't move nowhere as much as Forex. . .do you believe you would be mad if you're creating 2% daily???
I don't think so. I am aware that it could possibly be mad to believe that way but it's exactly what I do. I try to make sure I always have my trading in outlook. I know that I will not become wealthy overnight but that's not my aim so I'm fine with this.
Try to trade Forex but think in terms of stocks and it will allow you to understand that making 1-3% daily is more than enough to build a wonderful account and reach the point where you want to be financially.
Once I made my own 10 pips, I walked off and got my things together so that I can get in the shower. When I get out, I'll take a look at the charts and see where I may have the ability to get my next commerce. If I attain a gain of 9% in my own trading account, I'll close out my platform and stop for the day.
Yet another thing I do will never think I'm likely to lose. I know that it's likely to happen but I always believe I will win each transaction. Try to think positive all the time. It truly does make a difference.
Well, I got out of the showerlooked at my charts and took a short. I saw that price action was turning on me so I closed out my short and entered a long and 4 minutes after, I had gained another 3%.
I am currently up 6.09% so far and if I could make 10 more pips, I will be done trading for the day.
News is all about to be published so I will sit on the side till I think things have calmed down a bit.
Additionally, if I am posting too much in your diary, please let me know. I truly don't mean any disrespect. I am only hoping to help you find that making only a few small modifiions to your personality and you'll be well on your way.
Hello Msiamd,
Please try it again this year. I hope it'd be better than a year.
Thanks!
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