What Else Can I Learn From Trading Poorly?

The week before last started beautifully. I had five scalps in a row on the EU hourly. I had already made about 4% for the month.

The problem was, my strategy dictated I trade during the London session, and I live in the US. Trading at midnight into the wee hours takes its toll real quick, and I had to change back to the US session.

Long story short, I tanked until I could readjust. Anyway, even though I did not lose, I did not get near the profit I needed. I was definitely off my game. But I did learn a lot. My internal dialogue concerning the lessons I learned went something like this:

1. Trust your training

You have been at this for a while now. You know what you are doing.

2. Trust the charts

You know the setups. You know what is likely to happen. Trust what’s on the screen, and don’t overthink it.

3. Ignore outside events

Every spec of information needed to make a sound decision is on the charts.

4. Don’t get hung up on the characteristics of the pairs or the sessions

Just pay attention to what’s happening right now on the charts, regardless of what you think should happen.

5. Don’t pay attention to any advice on live trading rooms

There will always be detractors. Focus on the charts and stick to what you know.

6. Focus only on chart analysis

Do the best you can, don’t let anyone else distract you, and just focus on the charts.

My biggest hangup was #5, believe it or not. I let a bunch of so-called “pros” talk me into getting out earlier than I wanted all because “Breakouts never happen in NY after London closes.”

Well, guess what? There was a breakout after London, albeit not huge. I missed out on an extra 10 pips-- 10 pips is huge for EUR/USD, by the way-- that would have helped me have a better finish to my week.

Oh, well. Live and learn. I hope you can get something out of this, also.

What other lessons have you learned in the past to make you a better trader? Your thoughtful imput is always valuable to me.

6 Likes

Thanks for sharing this @steveepperson.

What hours of the day are you trading? Full time?

Tonight, I’m trading London. Sometimes I trade NY. Just depends. I prefer London.

Sucks cuz I have to stay up all night.

@steveepperson

Without trying to sound like

A) a broken record
B) an old fart (which I’m not)
C) a stick in the mood

The reason you are trading so poorly is most likely you are SCALPING

If you want to hand over money to the brokers and fall for the scam that trading on minute charts is a way to grow wealth then knock yourself out.

Trading is HARD on every timeframe - but scalping is the hardest of the lot.

The whole point of successful trading is to make it as easy as possible not as hard as possible.

It’s like banging your head on a brick wall and wondering why you have a headache.

3 Likes

I cannot agree with you more, I’m 17 and it’s not hard to see how hard it is to scalp. With all the technology and information brokers and HFTs have scalping is a sure fire way to lose your money unless you can be the most precise, certain and accurate trader.

Personally I trade on the 4hr time frame with 30m as my entry signals. Try holding positions longer then a day as well, don’t be scared of falling asleep and your account taking a massive blow, SL and risk management are out there for reasons

2 Likes

@KianMcGrath

Your 17? Well your starting early - good for you.

It takes time - but youve not got much to lose and everything to gain

2 Likes

Good post steveepperson. Hopefully, you’d make a better trade in the future.