So this post is pretty self explanatory. I went and got myself a risk manager. At the moment I am having trouble remaining disciplined and keeping the course. I dont think I am a bad trader per se but once I am on a constant streak I manage to get over confident and over leverage and ultimate blow weeks of profit because of emotions (THE TILT)
Currently, My risk managers role is to help me manage my risk by locking my account if I do not follow my Risk management rules which have been modified a bit. I think this is the best approach because I can’t seem to discipline myself and take a day off once my risk limit for the day/ week has been hit. You see in trading if you dont create rules you are bound to fail and do some reckless things. The worst part too is that sometimes you are rewarded for doing the wrong things and this creates bad habits.
For me the biggest thing is to maintain my lot limit and daily/weekly risk limit. This way I can really reduce my losses and focus on the process. Last friday, (February 9th, 2018) I was not suppose to trade at all. I even discussed the plan for friday with my risk manager, I said “I won’t be trading until next Tuesday” But what did do?
FIRST OF ALL! I traded a pair not in the plan. My week was complete and I didnt need to. Secondly, I opened a position way to big and incurred loses which could have ultimately been avoided, and then what did I do after that?? I opened up another position and didn’t control the risk. Lastly, after all said and done, these positions were all opened on my phone. Keep in mind my plan doesn’t account for phone trading but I did break the time I was suppose to trade. I absolutely had no right trading CAD news on my phone. its way to risky (my position slipped 250 pips).
When all said and done I’ve broken ~5 rules in 30 minutes between 8:30am and 9am on that one day, in hindsight that one day didn’t need to ruin my month/ week. My Risk Manager suggested that I be locked out until the 21st of February(2 weeks). Initially when rules like this are broken it is a lock out until the “first day of the trading week” aka Wednesdays, but this time is different because I also did the same thing last week and now its becoming a trend. Anyway I’ve agreed to the terms. I’m lock out and wont be trading until February 21st. Protect thy profits, for now I will take it easy reflect on what went wrong and do my best to not do it again.