I am on my 5th year trading.
When I started reading about forex trading 5 years ago,
I said wow, this is the kind of income what i am looking for, no boss, and working with my own self.
Technical person as I am, I love reading waveform and charts. This should be very easy and interesting.
Within a month, I deposited $2000. My goal was to experience, if forex trading really work.
And it does, within a month I lost half of my account, but occasionally, I could make 30% in one hour.
So it does work, telling myself, how can you not predict, the chart is perfectly pretty obvious. I just need to know the secret.
I started studying technical patterns, during my first to third year of trading.
By end of 3rd year, I loss my day job, I was still losing, so I stop trading.
It is also by this time, I realized that, all those technical pattern were all lies, specially the double head, head shoulder, cup,
they were all lies. They were all just a coincidence. For me, this put a line between a beginner trader and an experience one.
Realizing that they are all lies, for you to loss money.
After 6 months, I got employed again and within 1 year I started trading again. This time, I swear I don’t want to lose again.
So I consolidate everything I know about technical analysis. Pattern does not work, high time frame does not work - stop loss is just too high, and there is no difference between daily chart and 15 min chart. They are basically same base, daily chart is just slower - but it is the same thing, you can not predict them. I conclude that I trade with smaller time frame, but then again, looking at longer time frame is important to see the big picture.
I started winning. I started sharing to my friends and relatives, I said to myself it is time to share.
After one month, I loss again. One of my friend invested on other forex investment company instead.
Tsk, what is our difference I asked myself. So I visited the forex company website, they bragg they have a in house person who do economic analysis. I said to myself I can do that too, engineer student I am before, I even personally research why electrons move at all. This should be piece of cake.
I started learning about economic fundamentals. Not just fundamentals, but the fundamental of fundamentals.
I learned about GDP, supply and demand, competition, trade partner, interest of each participants.
And the most fundamental is this. It is banks banks banks. When and what makes the currency moves??
Its banks making overseas transaction for their clients. And when is that? During London time -because big banks are open during this times.
Knowing fundamentals… still I was losing. So I stop trading, and restudy for 3 months.
Then I learned about Money management. There are actually three terms of them (if you ask me).
(1) Money management, refers to continuous loss should be less than 20%. (2) Win-Rate and (3) Risk-Reward Ratio.
Applying technicals, fundamentals and money management.
But then I still loss, so back to my scratch paper.
Now, this is where I am now at the time of writing this.
I believed I am on the peak. I have traveled so far, I loss a lot since.
I already have learned almost everything. I believed I am almost there.
I even already added daily routine and follow trading plan. I know my plan is profitable.
Why am I still losing, and what is lacking??
The next step is Patience. Patience. Patience. and Be realistic.
Patience is the act of letting go, and forget about it. Shifting your emotions to another things in life.
Be realistic is this, I believe I can justly profit 13% per month, so that makes 3.25% per week, which means 0.65% per day average.
Surely my trading plan can do that even more.
Next question I ask myself is. So how can I control my losses, wins, and importantly greed (getting piss off when I loss)?
This is where patience comes in.
So I decide to trade only one time per day. and risk 1% per trade.
If I profit 3.25% on current week then I stop trading for the week.
If I loss more than 3% then I stop trading for the week.
This will keep me from losing more. keep my greed controlled and go on with other important things in my life.
At the same time this will force me make carefully analysis before entering a trade because I have only one shot for trading day.
I hope I can return here 3 months later and say, I finally am successful. If I don’t probably I am not.
And above all, God first, put God on top first. Like the priest says, glorify God by your lives.