We all get them, bad runs. I’m in one at the moment, this is my 2nd week of it. Last weeks run virtually wiped out the previous 3 weeks profit, leaving me a staggering 39 cents up for the month! Not going to get rich quick with months like that.
So, what can we do about these dry runs? I’ll be interested to see how others deal with them, but here’s what I’m doing right now.
First, I’m not throwing the baby out with the bathwater. I know my strategy and trading systems are sound, so I’d be a fool to disregard them. My Money Management is tight, but not watertight, so thats one area I’m working on - I’d rather lose a few pips than a bucketload right now because, no doubt about it, losing affects your confidence.
Second, I’m not entering new trades while existing trades are running a loss - I may miss a few opportunities but its prudent to protect what money you have.
Thirdly, I’m getting out ahead of high impact news - one thing Ive noticed recently more so than before is that the market reaction to news is extremely unpredictable, especially on Kiwi pairs which I trade often.
So thats basically it, until this run ends I’m trading like a kitten (I had typed something else, but BP autocorrected it :)). No risky moves, double checking everything, holding onto my money until I turn things around.