Well see I’ve shed 8% of my account in 4 trades (no, they are not all at the same time) recently, and I’m definitely feeling a bit down over this, mostly because I am following the general wind of risk aversion but still getting my trades shut in my face very quickly even though my SL is about 80-100 pips so I don’t think it’s too small is it?
sigh feeling hopeless* 
Makes me wonder if I can actually revive the Euro if I keep attemtping to short it 
ur best move now is to stay out of the market, take a step back, and give time to re-focus.
Yes would agree with the above poster about taking a break and maybe concentrate on some study.
If I’m feeling a bit down about my trades I do a bit of reading. Something like “Trading in the Zone” can help me get motivated and thinking clearly again.
Losing is part of the game and you have to accept that.
Thanks for the replies…
Just needed to say something on here. For no one shall know I’m trading Forex by night >_>"
What a lonely world lol
It helps if you know that the system that your using is operating within its expected parameters. You need to know if the drawdown just a statistical fluctuation, or is it telling you something is wrong.
Your question about the stop loss size being appropriate is worrying because it implies that your trading without a throughly tested plan, or possibly an incomplete trading plan, or your trading a method thats based on someone elses research that you may now be starting to doubt, and that really isnt a good place to be at all.
I know that everyone around here makes 750 pips a day and never has a loss, but in the real world that doesnt happen. 80% of the time I’m either losing money, or making back money I lost earlier. I regularly hit 7 or 8 consecutive losses, and I’ve seen as many as 14 consecutive losses and I know for a fact that one day I’ll exceed that number. It helps with the psychology if you actually know what to expect and having a plan, rather than it coming as a complete surprise.
Just remember that even when things go wrong … you have learned something. Go over what you did and think about why you did things the way you have . What can you learn from it? what should you have done different … what did you do right? Always evaluate and regroup and refocus until you have the success you are working for.
best wishes
Matt
The first thing to do is [B]write a detailed trading plan.[/B]
When to take a trade, how to manage the trade, when to get out.
Compare every trade you take against your plan. Did you follow the plan? No? Slap yourself (really, a good slap in the face, the harder the better).
Did you follow the plan but the trade still didn’t work out? Adjust your plan.
Repeat until profitable.
Makes me wonder if I can actually revive the Euro if I keep attemtping to short it
This got me laughing:D
Take a break or try trading tinny lot sizes for a while.
Maybe it’s not your stop loss that needs examining.
Could be your profit zone is a bit too lofty;)
yes, forex can indeed be a lonely world!
yes, forex can indeed be a lonely world.
You SHOULD never be detached. That you need to be like a steel eyed robot or have, “big balls,” to trade is total BS.
As far as emotions, the only thing you have to watch for is if you are placing trades or adjusting them because of how you feel and not because of your method / plan. Just do some self monitoring.
If you find yourself placing trades like you are playing a video game and have to beat it, walk away from the screen for a while.
It’s perfectly alright to feel bad about lost trades and happy about trades you win.
Just make sure when you trade, you take the trade because it meets your trade entry criteria. Likwise when you decide your risk. Dont let past trade dictate how much to risk because you lost or enter because you think you might miss out.
CONSIDER, each trade a seperate entity with it’s own start and stop point non related to the past trade.
Avoid, “shoulda, woulda, coulda,” I think this has gotten me in more trouble than anything. Once a trade is lost or won or your missed a good entry, it’s over dont think about what could have been. It’s fine to analyize for mistakes, but dont wander off into, “if only I had done this…”
If you are new I also recommend the book: Forex Patterns and Probabilities, By: ED Ponsi. Probably the best book on technical trading I’ve read. Easily apllicable. It will help you with trend and range bound market trading. If you have doubts on SL this book will help you place reasonable ones.
P.S. 4 trades and 8% lost is not bad at all. Sounds like you at least know how to control risk.
yeah I got to admit there’s an element of revenge trade in half the trades and I engaged in video game mode urgh
I am really trying not to regret things that happened but it’s difficult at times, especially when the charts tease you with say things like missing entry points by single digit pips and then prices juuuust hitting your stop loss and then reversing fast >_<
As for risk management, I’m certain this is one strong point I have, I am solidly mathematically grounded in the field of probability =P
I just need to work on my entry and exit strategy! thanks for the recommendation phoenix, i’ll look it up if i can.
Also, thanks to everyone for replying in my thread
Holy crap! Look at the Euro go today O_O
It’s true! I have the power to shape the world lol!
On a serious note, I did NOT enter another trade, I took a step back
Daily retrace of short trend IMO. Price hit the 10 MA, so for trend trading it’s a great short entry opportunity, if the short trend continues. I’m in myself.
Agree, there’s too much bad and practically no good coming out of the Euro to suggest this is a recovery. Then it’s likely to be a retracement from short covering?
I have a fib plotted from 1.3094 to 1.2144.
Went short at the 50% level of 1.2617, with SL above 61.8 and TP just above the low (1.2147)
Risking 2%
I too would like to congratulate you on taking your losses. 4 losses x 2 percent, sounds like your sticking to the plan. I pulled a stop the other day and paid for it dearly.
Some would say at a 6% daylight limit stop trading for the day/week, and looking how ugly the market is at the moment I’m not going anywhere near it. Can’t be looking good out there, even my broker sent me a text earlier today warning me of the potential volatility over the weekend.
So again I reiterate, congratulations on taking your losses! 