I traded in Forex market for last 5 years and I passed many good and bad days.last year I was managing 10 account with 10000 on each account and with Gods help I gained 50% in average in every month for each account. those days was so good and I earned this profit for 7 or 8 month. I didn’t change my trading discipline and method but now its about one year that many of these account was called margin and other accounts is in a bad loss. I just need to know is this the time that I must change my trading system?or I must stick to my method yet?can you introduce me articles and books that are helpfull for me or users that have same situation like me?
Maybe you should give more details on your trading system and money management rules. You either encountered normal drawdown for the system, but were applying risky money management rules, or else the system was not consistently profitable in the first place.
If your system relied on analysis of horizontal support and resistance, I doubt it would ever ‘stop’ working because these concepts are at the core of market structure and all of the market’s major moves will key off these levels.
Hello Shooji,
Wow, your trading system is awesome to make so much profit. I think you should just stick with your trading method with better money management. I had once using a system with profit for first year, lost for the second year and back to profit the third year too.
Anyway, in my opinion, rather than purely trading system, i belief more in price action because the market changes everyday. If you want recommendation, I would recommend piphut.com which provide daily analysis which i think is pretty helpful. Hope that help you.
Shooji, if you were making consistently 50% per month, which is practical, and then all of a sudden, you blew out the accounts, it is not a question of starting over and a stack of books. The best way you can answer that is to yourself. You did a 180 degree in a matter of a few months, so:
- Was it a sudden change in margin management or the position size of the trade? It’s possible to get too confident and greed sets in.
- Maybe it was something mentally. You were on such a roll that you started taking chances that you should not have had.
- This is one conjecture I hate, but I got to throw it out. Were you over margining those 7 months, and you were just lucky, and then it caught up to you?
- Distractions in your personal life could get in the way of sound trading decisions.
In essence, there are a myriad of possibilities that only you could answer.