its been while since the last time I posted self destructed back in January. A lot has changed regarding how I trade. The biggest thing that shifted my trading has been risk management and also my mentality towards tradings and making gains. Not only do I follow my risk management plan more strictly but I got some help. My “Risk Manager” really helped me realize again and again that this is a long term game. Ya sure, you can make 20% in a day but it doesn’t make sense to lose that same 20% an hour later or during the week because of over trading or emotions. Thats why its important to set daily goals and limits on your trading so you can really control the downside.
So back in January I grew my account from 2K to 3.3K in 2 weeks time between January 9th to the 21st. statistics below; you can see more details on forex factory.
now I will show you what happens when you stick to a plan that focuses on risk, controlling lot limit and having a daily/weekly DD. after January I made this drastic change and started to really focus on risk. below you will see my results from Ferbuary 1st to April 29. I had a whooping 164% return and a max drawdown of 36%( we are not all perfect, I’m definitely not proud of it but I did have 1 week of emotional trading. This actually made me lose out on 2 weeks of trading. Anyway on a week to week basis I will no longer had DD less that -10%.)
cant remember where I was going with this but I feel like if I continue on this course of monthly gains I can at least be comfortable once I decide to leave me job.,
I know I constantly talk about risk management and why it’s important. I believe one should never risk 50% of their account to only earn 25% or anything less than what your risking a matter of fact. Earlier this year I made a trader flow chart but after reflecting this week I realized that I was missing another question. The question would follow after “Calculate risk and setup position.” The question is “are you comfortable with the risk? if the answer is no then recalculate the risk and ask again. I realized knowing your risk and being comfortable with the risk are 2 different things.
“If you are too comfortable in a trade then you probably do not have enough size”
-GMan, ONE GOOD TRADE
This quote is kind of counter to what I am saying but I believe in it so much. Nothing is wrong with taking calculated risk as long as you realize the damage it can do and willing to setup the proper reward given the risk. My max risk for a day is 5% so I have the opportunity to make 15% if my risk:reward is on proper.
In addition, you also have to be willing to be have reasonable take profit. After reviewing a lot of my profitable trades I noticed that some never hit tp and I closed prematurely ruining my risk:reward ratio. over the long run this is no good because your SL will be hit and your wins will never out-weigh the losses. of the few that would hit Stop loss I need to determine if my TP is completely out of whack because I’m not trading the structure or if I’m forcing a specific risk:reward just so I can play the trade.
Anyway, trading this week begins on Wednesday and I’m so glad to be back.
Since I have a week and a half off I have had a lot of time to think & reflect about the long term & where I’d like to be as a trader and in my career. Truthfully I’d love to quit Continue reading “Work-Trade Life Balance” →
Hey guys, so I’m back after losing control and also after a week long work trip. The journey must continue though. Finally completed my first full trading week. I got back on the 28th of February and proceeded to break many of my rules into Friday, March 8th
Journal entry from Friday March 8th below: Continue reading “More Trading, More Loses, More Risk, More Everything (back dated March 8th, 2018, NFP)” →
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?
Continue reading “I got Risk Manager Now” →
I did it again today. I put in 2 extra hours after work came home mad AF and just a little stressed and tired. What did I do next? Continue reading “Destruction once again” →
Do I really know what makes me risk more than I should. I think vaguely it would be emotions, but which emotions exactly. I’d say mainly greed because I always forget this is a long term game. Last year this time I deposited 1K and lost it over a week period. 1000/5 trading days= –$200 a day roughly. Keep in mind last year I had no real risk management plan.
That’s a loss of more than 10% a day. If I took my time and managed my risk and actually gained that 1% a day for a year I would be laughing now with at least 10-15K and a ton more experience managing my risk and another step closer to leaving the 9-5 life. Right now the #1 goal is to be financially free then mentally and physically fit!
Remember this: Winning takes discipline, discipline comes from confidence and only a system in which you have confidence will you increase your chances of succeeding as a trader.
Today I officially blew up, -85% drawdown between Monday – Tuesday. (equity Curve Below) Continue reading “Self Destruction (again, Back dated December 18th, 2017)” →
Some Risk Management Questions:
- Was the loss of money worth all the emotional pain and financial heartache?
- If you had the opportunity to do that trade or investment again, what would you do differently.
Tales of Losses
- What is the biggest loss you have personally taken in the market?
- What was your emotional experience during this event?
- What went through your head and heart during this event?
- Were you in emotional control or was your destructive ego in control?
- Was it worth it my dude?
- What did you learn from this experience? If nothing, Then this loss will probably repeat again in the future.
- What new disciplines have you now implemented when you invest or trade to protect yourself against losses
Continue reading “Q and A – Psychology (backed dated December 10th, 2017)” →