Monday, December 28, 2009

December 2009. and year end results

+147 pips

+23.5 %

-22 %

I can scalp profitably, that's what I learned this year. I had few very good months doing that. There is no reason to jeopardize it with problematic trading, but I still do that. I guess it's a slow process.

In a meanwhile I got tired of my approach. Which was that I'm growing my account with compounding planing that in a few years that will give me real wealth. Well it's just my dream and reality is different. In reality after few positive weeks or months I non mistakenly lose all profits in a single day. All work is gone, profits are gone and my dream of compounding growth is back where it began. So I realized that is what's making problems for me. I'm not trading for profit, for present moment. I'm lost in some dreams and plans. I built myself golden calf of amount of money in my trading account and I'm worshiping it.
Now I'm abandoning that approach. Money at account is only margin which allows me to trade and profits are wired to my bank account. I need to get accustomed on earning money from trading. That is basic. In my head I had it all figured out, but things don't work that way, at least not for me. I need to put this in exact spot where it belongs, money making venture and not wealth building mechanism. Difference is slight but for me very important. Like we all know it's all up to psychology and for me this is where I was wrong.

All of that realisation came with thinking about that last big loss. When things settled, in my mind was only how much money I throw down the drain. I did earn them trading two months previous to that day, but it was money which I could use for some other stuff. It wasn't plastic chips or points score in some game. So I understood what foolish act was that from real world perspective disregarding pips and percentages. So I came to conclusion it's all foolish if I earn profits (money) then lose it, earn then lose. I'm not advancing in my get rich scheme. I'm just guilty of the sin of idolatry. It's pretty much bizarre that my worship idol was my trading account. So now I'm dethroning it considering it now just a margin for my positions. My profits are going to my bank account becoming cash that I can spend or save.
I expect from this change to finally earn some money from trading making that my new objective.


Black said...

nice way to end the year, congrats on that.

although i only traded live since august 2009, i do understand how u feel from the 'last big loss'. i learned from such mistake, but no longer dwell on it like i used to. u ain't the worst, now my acct is struggling to live on a thread, but it makes me more caution with every trade i execute, unlike wad i used to do. im not ready to give up. like u, i wan to make some money from trading too, as for me i guess i still need much time.

stick to wad u're comfortable with - scalping. not everyone can do that.

i wish u all the best in upcomings years and happy new year to u.

FX said...

Thanks Black, I also wish you best in following year!!

Risk Control Master said...

Congrats on the monthly result and bank some profit when you have it sounds a good idea.

FX said...

Thanks. I will bank it.

Mike K said...

Happy New Year and good luck trading in 2010!

FX said...

Hi Mike, nice to hear from you. I wish you happy and prosperous New Year!