Friday, February 8, 2008

I'm out of focus

It started well, I shorted market started to go down. In a second gbp/usd reversed back up while eur/usd kept sliding down. I held to b/e, to small loss, to stop loss. There I moved my stop and re shorted with another position. Got stopped. Started to short strong market with no reason, just some fighting response. Of course with hope that it will reverse back heavily. Well it didn't. I had chance to exit near break even for that set of 4 trades (4=crazy) and wisely I did exit.

After that I done some scalping, all profitable and took down the loss for the day from -60 to -44 pips.

I'm thinking now that I have to be more passive when it's about losing. I want to prevent loses and that impulse is so wrong and costly. I trade like I expect that I will have no loses, like no trade will be loser. I'm not prepared to lose, and I should on every one trade.
I know that I'm stating obvious facts, but I have to when I don't act on that.

It's especially hard to me to trade rational after I lose big like two days ago. Now I'm in state of mind get back lost and it's not good to trade well. I freeze, and let loses run and start automatic responses that cost me week's of profits.


Anonymous said...

Hello there,

I'm a noobie intraday trader that just started out with forex, I opened a micro account ($500) but it seems like it's impossible to get anywhere with this small bankroll...?

FX said...

It's all in percentages. If you think that to gain another 500$ in a year is to small goal I can understand you but I don't agree. It's 100% return. You certainly can't make 10K from 500.

Trading with small amount is far superior to not trading or paper trading. Emotions are for real. You can lose your money but you can also learn how to trade profitably. If you can gain that with your 500$ it's a big thing. You already know that 500$ isn't much in relation of business venture, you can't start any business with that. For trading besides capital needed, as in any other business, you need trading knowledge. That you can gain only through experience of trading with real money and you are on road to that.

lonelytrader said...

FX, nice trade on that flag headfake. You shorted that like a pro.

lonelytrader said...

Whoops, that was a pennant...sorry...but nice goin' anyway.

FX said...

Thanks lonely, I'm thinking that maybe I should do just like in that case all the time. Just watch, draw some lines, watch, do nothing, think nothing and than trade just pop in my mind. Also, I'm much better in those single digit s/l & t/p trades.

brian said...

I now enter my trades expecting a loss, but since my loss amount is known I'm ok with it (right now it's $200). By doing so it gets rid of the 'have to always be right' mentality I used to have. I've gotten much better at shirking off the loss and looking for the next setup.

FX said...

Hi Brian,
now I want also to expect loss on every trade. I totally ignore that and pay for it.
I can't trade any more like I don't use stops. I got to take losers how many I have them, and how much I lose that way. If I'm net negative with that it only means that I'm not trading well enough and why should I lie myself if that's the fact.