Forex trading is not for the faint of heart. Let’s see if the market reverses, before I am forced to cut losses to prevent getting wiped out.
What are the chances that the 3 currencies I need to be weak are the strongest and the 3 currencies I need to be strong are the weakest all the the same time? This has been the case since last week, for all 3 currency pairs I have an open position for. Lady luck is not on my side.
I was able to close 2 of my 3 losing positions NZDJPY and USDCAD with a small profit. My total realized profit for February is only $390. It is still equal to 130% of my original equity of only $300 so I am not complaining. The last 2 weeks of February was the most challenging for me.
I’m starting the month of March 2021 with 3 losing positions but I am not that concerned. I believe I’d be able to easily manage them all back into profitability and close them.
I expect EURCHF to retrace all the way down to Fibonacci Retracement level of 61 so I have set a positive stoploss for it to be able to close my losing position with a small profit.
The only red in my trading history. This was technically not even an actual losing trade. I made the mistake of partially closing a winning position that I have previously modified (doubled the lot size). The problem was, I modified the position when it was losing. I did not know that IC Markets/CTrader rule is first in/first out. So when I partially closed my winning position, what was closed was my first position for USDCZK which was losing at the time. So even if the position was overall profitable by over $40, I ended up with a loss, when I was expecting to secure half of the profit when I closed half of the position’s lot size. Lesson learned… Do not partially close a profitable, modified position which was previously losing, to secure profits.
My account’s drawdown shows how I struggled in my trading the last 2 weeks. Even though I still managed to get out of it without a single losing trade, I was very close to getting wiped out and my equity went down from $1,450 to only $400. This is an amount of risk that most traders would not be comfortable with. It requires tremendous faith in my trading strategy and degree of understanding and familiarity of market movements. Also needs a very strong emotional fortitude. Fear is not a part of my trading psychology.
Hello @thesufitrader I’m actually learning from your losses and drawdown.
I have keenly observed that the last two or three days in February prices of commodities retraced while you were still trading inline with the trend.
Is there no indicator or strategy to show when trend is weakening and about to retace?
EURCHF continues to give me problems. Instead of continuing to retrace, it actually rallied back up to the previous high. So what I did instead now, is to open a new sell position. The idea is, when it retraces again, I will be able to profit from it, while I wait for it to retrace all the way down to my losing position. So I can close it at a small profit. If I’m wrong (again) and it instead breaks resistance to create a new high, I can take a small loss as I have set an SL for my new short position on EURCHF. I normally do not use a stop loss but this is a different scenario.
Identifying trend and waiting for pullback to trigger an entry is the best trading strategy. It is called ABC or 123 trading pattern. I personally love trading with this strategy. I look forward to seeing some of your trades to get more ideas on this. Thanks in advance.
As a beginner, I thought that keeping a trading journal was a waste of time. But when I started to trade forex and couldn’t figure out what I was doing wrong, I realized the importance of maintaining a journal. Since then, I have been writing all the details about my trades in it and analysing my performance.