I am writing this topic after I took a big loss on my trading account and I need your help.
This is my 3rd trading account. My first 2 started kinda “ok”, not winning much, but also not losing much too. But then it happened:… I took a larger position on CFDs Indexes (SP, DAX ou ND) and didn’t have a stop loss, because I “only” intended to win a few quick bucks.
As you’re probably guessing it didn’t go well and I lost around 25% of my account (both of the times) on a single trade.
This made me take a step back and read some more books on Trading Psychology and after I read “Trade Your Way To Financial Freedom” (by Dr. Van Tharp), I felt I was ready to go back to the markets.
So, I opened my 3rd account on Dec 2018 and resumed my trading with improved confidence and mindset. Truth be told, everything was going as smoothly as it possibly can. I trade mostly Forex and have a good grasp on Technical and Fundamental Analysis, so I focused 100% on trading the currency pairs I felt more comfortable.
I didn’t trade much on December, so my real results came in January and the fact is that the first month of the year was a great one, having achieved a 2,5% return, which is on my monthly target (2% to 4%).
I felt great because I was following strict risk management rules, trading smaller then usual and less often. I reduced the number of trades I took every week, by a significant measure, focusing on higher risk-to-reward swing trades (mostly base on Pivot Points Theory).
Everything was great until yesterday…
… I don’t know what compelled me to do it, but the fact is that I took a larger position again (this time on DAX) and didn’t set a stop loss. I had a short position and if you look at the chart, you’ll have no trouble finding out how poorly I did.
The result? I erased the 3% that my account was up since late December and an “extra” 20%(!!).
I believe I’m in a big need of professional help. I keep sabotaging my trading performance by making absolutely shocking mistakes. I really don’t understand what drives me to do this terrible decisions, but I’m desperate to fix this.
I covered my losses by depositing the amount I lost, with little effort, to try to forget about the trade, but I won’t do this ever again.
I feel like I’m at a point, in which if I ever do this kind of mistake again, I’ll just give up on trading.
I’ve been complimented for my technical analysis and trade planning (I share well thought and conservative trade ideas every week), but my mindset and psychology are not allowing me to fulfill the potential, I strongly believe I have.
Have you been through this kind of experience? How did you fix it?