Today I officially blew up, -85% drawdown between Monday – Tuesday. (equity Curve Below) Keep in mind this was not in a single trade and should never have happened based on my -10% a week Risk Management Rule. I think my emotions between my uncle dying and my GF leaving really messed up my mind and clouded my judgement during these trades….. I literally Full Margined 3 times in 24 hours. to my avail, they all were in decent profit before going negative. Remember pooosay, this is a long term game. 2% a day for 3 years and your a trading millionaire. Each and every time you blow up you prolong your long term goal of living off of this.
You know, I am completely responsponsible for blowing up this account. I think this is probably the 4th time this year believe it or not. No matter what is happening in life right now its my F$%king account and responsibility. I created rules for this reason, these rules will save my account and keep me in the game and allow to take risk when the opportunity arises. I think I need an emotion gauge before each session. am I feeling happy? depressed? excited? giddy?
So lets say I actually followed my risk management for december, at the time knowing december would be low volume I wanted to cut down to 2 trades day to avoid self destruction and stupid trades. If I did in fact follow the plan there would only have been about 2-6 trades between the monday to tuesday. Now lets assume I lost every single one…. it wouldnt even be close to a -10% lose for the week.
$1,000 account -6% = $60. if I did 1% as planned that would be ≈940 after loses.
(just a note, I had to use ForexFactory chart because MT4 would not factor out my current equity when I pull the dates leading up to me actually blowing up. This curve represents November 16th to December 29th. If you do the math I was recovering from a heavy drawdown before lol)
This will be my book this year!
Self-Discipline in 10 Days : How to Go From Thinking to Doing by Theodore B
I really need to hone in on my self discipline and I need to follow my Risk/Equity Management rules to a ‘T’ if I am going to become a successful trader.