Howdy all!! As we can see from the above... ITS RED!!! My Green spree comes to a halt. Once again those feelings rise again. Frustration, self doubt, impatience bla bla bla, u name it...
But!!! Those above are only temporary, i enjoyed my weekend and came back to reality. I studied back and find out my faults. Learn from it, carry on and avoid making those mistakes. How many more mistakes can i make?? I told myself... Someday i will finish commiting all the mistakes and learn from all of them, thats when i will be a better trader. Well some of u may say, "there is no end to learning in trading... " If thats the case, i'll be glad enough to learn most of it and will carry on learning.
Lets talk about my lost for that month. That month was a low trade month for myself and i
believe Black too.. Due to Chinese New Year i guess, the mood for trading is just not there u see.. So every trade that i did must count for something. But that is not the case. The number of lost trade are more than profits.
Finally i came to a conclusion, it has something to do with my setting of TP. Well i always emphasize on good entry position and Profit Vs Lost Ratio, during a trade it has to be like example,
(Profit 50pips Lost 35pips) A 15pips difference for this case. Sometimes 10, 7,5pips or watever. The reason for this is to maximize my wins and cut my lost. So that even with a 1 Win and 1 Lost. I will still end up profitting abit. During a long run with this strategy, i can consolidate and compound up till 50 - 100 pips even when my success rate for number of trades is like 50%. This strategy was proven useful for my last 2 months. The usefulness of this strategy is more obvious during my last month's review as my success rate for that month is almost 50%.
Now so why the hell did i come out with a Red for Feb??? After i talk so much above and somehow like bragging how good it is, i end up losing?? Well the reason for losing partly is, quite ironically, caused by the above strategy as well... I put so much attention in my ratio, that i quite often ignore one of my most important commandment when setting my TP.
That is "Set ur TP at where your analysing tells you it will hit and not how many Pips you want from the trade."
Quite often i manage to come up with 30++pips profit before it went back down to either smash thru my Stop loss or ended due to the trailing stop i put up. Then i will soon realized that my price actually did hit one of the resistance/support when my profit is at ard 30pips++. I should have came out but instead i stay on because i want it to hit my TP of 50pips. Thats when i realize how stupid i am. Its greed perhaps? Its a scenario of Emotions over Thinking. Which is, to my opinion, not desireable in trading. But that doesnt mean the Profit Vs Lost Ratio strategy that i talked about doesnt work, its just that it cannot be a standalone strategy, it has to be used with confirmation with other signals.( Whelter there is any obstacles in the way such as resistance or support that i overlooked bla bla bla)
Now that i learn from my mistakes, i will try to not do it again. Learn from it and it doesnt matter how many mistakes u make. Mistakes indirectly makes me more powerful. I found that something has changed in me after i embarked on this journey of trading. Things that i value in life changed as well. Lets take reading for example, yea reading is good, everyone says so... Quite often we hear ppl say "Knowledge is Power". And fortunately, yup, im a reader. But, i read War novels, fantasy novels... hahaha, slashing killing romance and heroes. Its not gonna help! So a few months back i started reading on something more useful, read on the Bio of successful people, read on books on Trading, the mentality bla bla bla that u see in bookstores, books that usually end up below the title Self Improvement. Thats the change that im talking about =)
The greatest asset is one that we all have, our brain