Good post from LivingfromTrading.
Its been 6 months since I started forex trading. Before this, I have traded in stocks and CFD. My trading experience in forex has been mixed so far.
My initial forex trades mostly ended in profits. Using my limited knowledge of technical analysis and constantly updating myself on daily news, I managed a decent return of USD1000 with a USD2500 as capital.
Gradually I became more confident and started to double up on my trades, abandoning my initial strategy and plan, only to watch with horror as my trades went against me. Realising by then that I only traded out of anger (to recoup back my losses), I began realising my folly when my initial capital and profit were depleted to USD500!
I experienced the above in the space of the first 3 months.
Nowadays I would set myself a weekly profit target with daily stop loss. This is to prevent myself from overtrading and overextending my margin. The past month has been good with the exception of a few bad trades this week. Been telling myself to just keep focusing on the fundamentals ie GDP, indicators, slumping world economy etc but seems the market movers main focus now is the ‘noises’ coming from DT and white house at the moment.