Just finished trading. I opened one new position. No other signals. I saw some trades that looked tempting, but they’re just random walk trades. Meaning that, it’s too choppy to be trading.
Those are the trades that have been ruining me. There is a point that price is trending. But for how long? How wide is that channel?
If there’s a strong trend without much volatility, well, understanding the direction isn’t that difficult–particularly if the trend is lasting for 10 days or more.
But when there’s a trend with a lot of volatility, and each mini swing lasts 3 or 4 days, that’s when it gets more difficult. It’s not as simple as ¨just buy when price is going up¨ and ¨sell when price is going down¨, because by the time you get your confirmation, it might be too late.
Some volatility can be really confusing. And that’s the game. How to not get eaten alive during that time. For me, the answer is ¨don’t play that game¨. For me, the solution is to just wait.
Yup. I saw some trades that I wish I got it. But, the signs weren’t obvious enough for me. So, I just have to suck it up.
Anyway, I reviewed my pairs rather quickly because most of my pairs are still trending, and I have to wait for the next cycle. I have just 4 trades, running.
This is quite different from about a year ago when I had 20 trades running. It was cool. I’ve had moments of 20 plus trades, all in the green.
How could it be possible for an account to shrink when that many trades are in the green? That’s actually a complicated question. Being in the green doesn’t count for much, if you’re in the green by a few pips. You could be in the green today, then get stopped out tomorrow. After that, you’ve still got a roster full of profitable trades, but the margin is shrinking at the same time. So, it becomes a picture of half truths.
Just because you have a plethora of profitable trades running that doesn’t mean you closed them at profit. And it also doesn’t mean that your margin is growing. And that’s part of what my problem was when I was trading live. But that’s mostly due to too much flexibility in my strategy.
Right now, I feel like I’m doing better. I’m trading less, and that means less losses, which is a big deal for me.
I’m really considering focusing on clue+confirmation trades ONLY. It’s easier said than done, because I have to watch all those nice pretty candles and get no profit from them. It sucks because the voice in my head says ¨man, imagine if I took that trade…woohee that’d be a lot of money…maybe I should take trades that look like that next time…¨
I can’t do that nonsense anymore. I can’t chase money. There are trades that could be profitable…these mid-swing, pullback trades could be profitable, but it’s not working for me. So, for the moment I have to stop. They’re killing my account. I wanna focus on higher-probability trades.
Maybe later, after returning to live trading, I can practice these mid-swing trades in demo. But not now. Right now, I need to focus on properly trading one strategy. Just one. Let’s get busy!