Correct, Ro, my stops are tight. I would say I’m a scalper by definition because I’m looking for those elastic band moves. As I’ve said previously, there are other trades (i.e. ascending triangle breakouts) that I look for too but I just don’t have the same kind of confidence and conviction with those as I do the washout longs.
I actually learned the washout long strategy from Madaz Money (a.k.a. @madaznfootballr on Twitter). It’s a very unusual style and extremely hard to replicate but, for whatever strange reason, I fell in love with it because his winrate was so high (around 85-90%+). As I’ve said before, rightly or wrongly, I have to win often so this strategy works great for me.
It seems 99% of the FOREX traders I read about are swing or position traders but at this point in time, I do not have the mental strength or psychological fortitude to be in a trade for hours or days. Maybe one day I will get there but right now, it’s base hits.
Regarding account balance, I am keeping my balance extremely low compared with my size. There are two reasons for this:
I have access to 6-figures if I need it but I don’t want it sitting there in the account when I could very easily have a meltdown and blow the lot. I can trade decent size with $10-20k so why have another $80k sitting there tempting the beast inside me. The way I look at it is, let’s say I do have a blowup, I’m only exposing myself to a low 4- or 5-figure amount rather than a 6-figure amount. It’s kind of like an account stop-loss. Rather than having a $100k stop loss, I am trying to keep it around $8k or $10k. Make sense?
I want to get into a habit of withdrawing, rather than letting my account grow and grow. I’m about to hit $10k profit for the week so my plan is to withdraw every time my account hits $20k balance.
I know I’m going to get a lot of seasoned traders telling me I’m completely bonkers but I have to do what works for me.
Thanks as always for the feedback guys.