The FOMC rate today was left unchanged (as per my expectation). However the QE2 which was initially forecasted to be 500bln usd is increased to 600bln usd. This for me is Dollar bearish sign and i will look for trades that will reflect this.
On the issues with swing trading, I'm abandoning everything related to that and focus back on short term 10-20pips as that what i'm good at. I have loss too much trying to trade long term. My personality and trading style does not suit long term at all. Holding 100+pips of loss is just not my cup of tea.
And one more thing. I really need a hard version of Trade Journal. That mean one written in a notebook with handwritten trades entry and outcome. I believe this will make me a better trader.
Thursday, November 4, 2010
Monday, November 1, 2010
Trading update.
After 3 month of live trading. Its unfortunate, yet expected. I'm down by 26.5% of my initial trading capital. I have identified what the problems are and listed them out here:
1. Deviate from trading plan
My trading plan are well laid out and i should be following them religiously. However, the lure of big pips gain in a single trade is too much to resists and i traded not according to tried and tested system. I ventured into swing trading which is not my strong suit. Swing trading require huge stop loss (relative to my short term trading) and with my untested skills, is a recipe for disaster.
2. Overleveraged
Yes, I'm guilty of this. Being over confident after a 13 consecutive winning trades and getting cocky. I start to going over my limits and enter unnecessary trades that results in big loss. Remember, the market will SPANK you once you start to be undisciplined and cocky.
3. Moving stop loss higher OR deleting stop loss.
Very typical of a loser. Once a trade reverse against me and gets near stop loss. I moved the SL further as i don't want the market to get my SL and return back. Now this is a big mistake! You should read a story by Rob Booker title "The Fairy God Trader".
Now i'm back to trading real small lots while i gathered my lost confidence and try not to repeat the same mistakes again. This have cost me dearly and i'm working hard toward restoring my loss. Now i dont need to outrun the market. I only need to outrun others novice trader as Rob Booker says it (I'm a fan).
All the best in Trading!
1. Deviate from trading plan
My trading plan are well laid out and i should be following them religiously. However, the lure of big pips gain in a single trade is too much to resists and i traded not according to tried and tested system. I ventured into swing trading which is not my strong suit. Swing trading require huge stop loss (relative to my short term trading) and with my untested skills, is a recipe for disaster.
2. Overleveraged
Yes, I'm guilty of this. Being over confident after a 13 consecutive winning trades and getting cocky. I start to going over my limits and enter unnecessary trades that results in big loss. Remember, the market will SPANK you once you start to be undisciplined and cocky.
3. Moving stop loss higher OR deleting stop loss.
Very typical of a loser. Once a trade reverse against me and gets near stop loss. I moved the SL further as i don't want the market to get my SL and return back. Now this is a big mistake! You should read a story by Rob Booker title "The Fairy God Trader".
Now i'm back to trading real small lots while i gathered my lost confidence and try not to repeat the same mistakes again. This have cost me dearly and i'm working hard toward restoring my loss. Now i dont need to outrun the market. I only need to outrun others novice trader as Rob Booker says it (I'm a fan).
All the best in Trading!
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