Hi everyone, welcome to my journal here.
A Little About Me
I have been trading FOREX on and off for about 13 years now, wow time flies. Believe it or not, I am yet to find a good strategy, and yet to be profitable!
Sounds crazy I know, to be unprofitable for so long, but the truth is, I study and observe the markets far more than I actually trade, and often get distracted with other things in life. Win a little, lose a little, strategy hop.
But man there is just something that fascinates me about FOREX, and it always draws me back in. I feel like I … just gotta know if it can be done
I have watched countless videos, been on courses, used trade signals, studied myfxbook accounts, read thousands upon thousands of forum posts , attended programming courses for coding EA’s … martingales … honestly I have tried what feels like everything.
Except one thing, which is to knuckle down and actually try hard with my own trading.
A Little About Trading
This is all just my opinion, your mileage may vary.
On this journal I will talk about what I have learned about trading.
Here is a list of what I feel are the challenges I have faced up till now, I bet some of you have faced the same challenges, or are facing the same challenges right now whether you know it or not
- Trying to use someone else’s strategy that I didnt understand/agree with, or trust
- Hanging on to losing trades
- Placing too much importance on indicators
- Placing too much importance on entries
- Not trading due to fear of losing/being wrong
- Being lazy
These are some of the issues I feel have caused my trading problems in the past, and I am sure many of you have experienced them too. New traders reading this may be yet to experience, so read carefully what I will say, and maybe you can save yourself thousands of hours and 13 years
In future posts I will discuss these challenges in more detail, and provide some solutions, leading to a strategy.
My strategy must be logical to me, I need to understand it and trust it in order to trade it. I cant just lift it from someone else, I have to trade what makes sense to me, so that I trust my actions.
We Must Let Winners Run
For me, this is the only way to trade and be profitable in the long run.
I have of course tried the opposite, holding on to losing trades and looking at my balance while ignoring my equity (what a joke ), martingaling, averaging down into losers.
While these strategies can work at times, I believe in the long run they do not, and I will not trade them. At the very least its just difficult psychologically to be in big drawdowns, praying for price to come back.
Its better to use sensible stops and get a good nights sleep
We must lose, and we must lose small
We can never predict the future, and every trade has 5 possible outcomes:
- Big win
- Small win
- Break even
- Small loss
- Big loss
By simply using a sensible stop loss, we have eliminated 5. Big loss from our possible outcomes, We are only left with desirable outcomes.
All trading strategies will have losers and losing streaks, therefore it is essential that we never take big losses.
My trade strategy will aim for big winners, with the hope that the small winners and small losers cancel each other out. Lets wait and see.