Hey guys, this post is actually well over due, I had one of my best trading days this month and it may turn out to be my best week yet. My risk was consistent and lots size in control, everything on point. In addition to that I was sooo very close to break even (2K)(by the time I wrote this I was already 10% for the year 🙂 then back down to -40% and now coming back to this again 2 weeks later im 5% for the year after doing a huge YO-YO in my equity curve. below you’ll notice I had a good 2 days to start and then massive drawdown for the next 4 days. I hate when loses come, I feel loses are obviously inevitable in this business but one must always control the risk or you will blow the F up.
anyway I’ve been meaning to write this post since May 10. “Am I ready?” It’s funny because the post before this I talked about almost making it and essentially being ready. Next thing you know I blow 700 in a day. I think fear is always a good thing just not while trading. My biggest fear right now is to not be successful as trader once I decide to leave.
Can’t remember where I was going with this post so I will stop here.
My goals going into next week and to follow for the rest of the year:
- not trade on friday
- keep my risk consistent
- only take my BEST TRADES!!
- control my damn lot size for the day and my trade limits!
anyway wish me luck,
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.
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” →