Ok, so I have traded for a relatively short time but I have noticed something very quickly about this trading malarkey, a lot of it is spent waiting around- waiting for trade set ups to appear, waiting for TP to be hit (hopefully lots of the time) and waiting for SL to be hit (hopefully not much of the time). So, what I’ve decided is to create a kind of online journal where I’ll write down my thoughts and daily results.
I won’t be giving any ‘follow me’ advice, nor will I be sharing the exact specifics of my system. This is purely for those who may want an insight into how a ‘newbie’ is finding things.
So first of all, a little background; I’m 25, live with my girlfriend and have a son, who on the 22nd will be one. I left my job at JPMorgan at the end of July to attempt to try trading full time as quite frankly, I wasn’t happy in the daily grind. I was making good money actually, and could have went through life in that job being comfortably financially. Not rich, but certainly comfortable.
So what were people’s reactions when I said I was leaving to do this? Mainly supportive actually. However, whilst they were pretty supportive there was one underlying overtone- “that’s risky”. Yes, yes it is risky, but what in life worth doing isn’t? I don’t intend on going through life being status quo. That would bore me and I would never get any self fufillment.
Closed positions pip count- +27.1
Open positions- 2 trades
So- what have I decided in my admittingly short span as a Forex trader. The number one difference between a winning and losing trader is Psychology. Psychology, psychology, psychology. The ability to detach emotion from singular trades and focus on the big picture. This is so easily said but so hard to achieve consistently. The ability to truly realise the market can move in any direction at a particular time and there is nothing you can do but apply your system consistently.
When I first started live, I hit a little hot streak and keeping to a system was so easy. Then I made the fatal flaw of trying something else out. NFP report came out and I made a gamble on direction when I heard the news. I was right and boom, I had made a very nice sum of cash from, what I believed, to be a patently obvious market move from the news. Winning that trade was one of the worst things that could have happened. I was filled with confidence, how easy, so straightforward. Well, that was the last winning trade I ever made like that. I made a few more trades, bad money after bad, with the memory of my right call all too clear. Once I hit that, “this is too much” point, I closed my positions and shut my computer down. Terrible feeling doing what you know is stupid and what you have laughed off previously as “something I wouldn’t do”.
Anyway, I have revamped my system and now I’m on ‘take two’. where I look to follow my system through thick and thin untill I can say; “This definately works” or “This definately doesn’t work”.
As I finish this post, I had a losing and winning trade which takes me to +24 for the day so far…I’m in one live trade which ain’t looking great…
Interesting, just got another phone call from a job agency to enter back into the world of employment. I gave the old, “send over the job spec and I’ll have a look”. It’s another thing that adds to the psychology of trading. When a losing streak rears it’s ugly head, sometimes it’s much easier to think about a regular solid payslip!
Why not have a steady paycheck whilst you’re still learning? I guess it’s too late for that now though since you’ve already quit but if this next job offer pays you decently, I would suggest you take it just incase you hit a large losing streak
To be honest, quite a few people have said that to me. I didn’t stay working for 2 reasons; 1) The sort of work I’m involved in (or was) means that I work a lot of hours. I was regularly working 06:00 to 06:00. Couple this with a young kid and girlfriend means there ain’t too much time for Forex! 2) Because of how I am, I either need to be fully commited to a thing like this or not at all.
Worse case scenario,if I can’t be profitable long term in Forex, I’m sure I could get a regular job, I’d just prefer not to!
Curious with your start up money did you build up a cushion for expenses the next few months or you depending on spousal income to take care of that?I dont mean to get to personel but most traders need to have some other source of income stream be it stock dividin,real estate,part time job or it is going to put pressure on your trading.
Yeah built up a cushion for living expenses as well as a seperate bankroll for Forex.
Whilst I have no immediate pressure to start turning a consistent good profit, I still have to at some point to avoid getting another job! I call that incentive to learn!
I’ve got a very risk loving personality and as such, I much prefer to be in a trade than to be waiting. Just got to make sure overtrading isn’t a problem, which it shouldn’t be if I keep to my trading method.
That’s why I love it when I wake up and can get stuck in right away. Currently in one open trade in USD/CHF- TP1 was already hit and half my position was closed with my remaining position brought to BE.
Hi, where did you get your forex trading education? Did you join the school of pipsology here? I agree about the BIG PICTURE focus you mentioned. Imyself am totaly new in forex but I need to learn this stuff. I just have to as I came to the conclusion that (money managed) forex trading is a deffinately away to work on ones financial freedom. This is where your money starts working for you.
Well, remaining position got stopped out for break even so back to the waiting game.
Currently trying to determine the best lot sizes to use. Whilst common consensus seems to be below 2% on any trade, think I will be variable between 1% and 2.5%. Taking two different TP levels, I want it still to be ‘worth’ it for me to close half a position and that remaining half to have significant value…
Yeah I started here at babypips school. Loved the format and it was so easy to read. Not tried the new school actually but I think I will do it, it couldn’t hurt right? That is one thing though and it has been said a few times on other threads, the babypips school is a good starting point but will only give you the foundations.
As far as further knowledge, I watch webinars, read ebooks and the different forums. I look to not pay for educational material as I believe there is plenty free online to get going.
I think the same as you. Forex is what I am hoping to eventually lead me to financial freedom. I know it won’t happen overnight and will require work but I’m willing!
On a side note, have you read Rich Dad Poor Dad? Read it about six years ago but loved it. It’s what ultimately made me not want to be an employee.
Currently in a short trade of GBP/USD. I didn’t quite make the trade correctly as I used too high a lot size for the amount my stop loss has to be at. I closed half my position when it started to go into profit as I wasn’t comfortable with the amount of risk I had. In hindsight, I could have made a bit more leaving the whole position in, however, I am happy that I’ve closed half as I’m feeling it’s better to follow my trading and money management system…
Lesson! The brightspark that I am left an entry order open forgetting to cancel it once my trade set up got negated. Luckily, the downward spike in USD meant it was profitable before I closed it but man, that’s certainly gonna make sure I remember to close entry orders when they are no longer needed! I would have been angry if it cost me!
Account size- £1000
Pip value for GBP/USD .63 for lot of 10k (this value is provided by brokers)
Stop Loss- 50
Risk- 50*.63=£31.50/3.15%
Does that make sense? That’s how I think of it so it may be easier for you to do another way. However, you need to know SL to calculate your risk position. That should determine your lot size rather than lot size determine where your SL is.
The feeling of being on a good streak is dangerous. Currently in 3 open trades, all are doing well but this is filling me with confidence, which i know it shouldn’t be. I need to get to the stage where a losing trade feels no different to a winning one. Where I only focus on the weekly/monthly/quarterly and yearly bottom line.
Anyway- US news coming out, lets see how my trades are affected…