Thursday, March 5, 2009

Experiment

Today I approached trade like I had no trade before, like it's first one. It was experiment because I made decision that it will be scalp with 5-6 pips stop. I would exit it if it come back to 590, except if it is just a spike in 10sec move. So I had my finger on the trigger and no hard stop on that level. I need to see that I can exit where I say so before the trade. There was spike next minute approaching my level and in following minutes I had thoughts to close it because it's not performing. But I than came back to the fact that it is 5pips s/l so b/e is not an option now. I was looking to 5-10 pips and was lucky that first wave pull down nicely so I took 17 pips. It's like 3R on stated stop.


4 comments:

ORION MACHINE said...

very good, what made you approach your trading with such a mindset this morning?

FX said...

Well as you know trading this year is asking from me to come up with best and lose everything else. It's not easy. My latest thought process is that I don't want to be frustrated with trading. Averaging and blowups are the biggest frustrations. With them I make exceptions to my rules or steps that I think are the best, just because I think that it's financially best option in that moment taking the exception.

Yesterday I was frustrated also. Majority of the day I thought it was because of a loss but then in the evening I realized that thing that frustrated me was bad choices. I let scalp go against me too much. I add new position while I'm in the loss with first. I don't exit second position when it's not performing, staying in double risk. In the end I revenge trade again with double position. Well it's all against some of the rules that I picked up through the years.

Now I made a list of my rules. It's evolving so I'm not putting it out for now. Also I want to see can I trade by that list. Today before the trading day I reread the list and was all up to respecting it. So I did. Will see how it will go in the future.

The most important thing is that I put financial benefit in the background. It's not worth making exceptions if my priority is peace of mind. Privately I'm the biggest peace of mind kind of guy that I know of. So running the trading that way is a must after years of frustrations. Losses doesn't frustrate me as not following my rules and making exceptions. It's not worth it and now it's also showing as devastating to my bankroll and confidence.

I guess that I needed that question of yours. Look at the answer, it's like a post.

Lord Tedders said...

FX,

Nice trade.

I totally understand where you are coming from. Rules must follow both personal comfort levels and profitability. Sometimes you have to bend the rules, but if you are consistently breaking them then its time to change the rules.

LT

ORION MACHINE said...

Glad to hear that you have a set of rules that you will be looking over, that is very good to do. wish you the best with these things.