Just thought it is good to update you on my reflection of the week in the markets, it did feel like a worse week then it was but Friday we managed to pull some pips back and finish with only a loss of 11 pips.
So when we were further down before Friday – Did you notice me do anything different in the markets to what I do week in week out?
The answer is no – I didn’t decide to enter more trades to chase back losses, I didn’t stop trading for the week, I didn’t amend stop losses to make them larger. I just stayed consistent with the same approach I always take. The strategies I use are high probability strategies, so there are chances we will go through a rut or a few losing trades because not one strategy on the Forex market is deemed the perfect strategy.
The important part is trading is how you react in times like these, and in most cases with retail traders they behave differently after a run of losses, they tend to think their strategy doesn’t work anymore and they then tend to shift strategy. Sometimes you just got to accept defeat and let the markets take that win, its all part of trading, for every losing trade your closer to your next winning trade. Part of chasing losses and losing money comes as a learning curve to everyone, I’m here to make sure you don’t let mistakes be costly and to help mitigate mistakes you will make as a trader trying to find their craft on the markets.
So even after a run of losing trades, I kept my routine the same, I kept my analysis the same, and just dusted myself down and got back on the bike to go again. What we have to remember is that when we go through times like this there is only one thing that will save you and that’s RISK MANAGEMENT, if you were risking 2% a trade – It would take 50 losses in a row in order to blow your account, and if you risked 1% it would take 100 losses – That would be highly impossible even the worst trader in the world wouldn’t achieve that.
So remember its all about managing your losses well for long term success, if your trading now and every time you have a stop out that amount of money pains you then please reduce your pip sizes.
New traders should not get emotionally attached to earning money at the start, its all a learning process, getting used to being in trades ensuring you keep discipline, that’s also the part I want you all to be helped with, whether we are hugely in profit for the week or running at a loss you can not afford to change the way you behave with the markets.
10 days ago we woke up in the morning had two trades hugely in profit and we closed them before 8am for 135 pips, I then didn’t share any trades the rest of the day, I personally didn’t take any myself, I went off and enjoyed the day. I know only a few of you done the same but also I know a few of you jumped back in the markets and lost some of the gains, (its ok its all part of learning)
One thing you shouldn’t be ashamed of as a new trader is losing on your own trades, because if it was that easy then everyone would do it, some of the richest traders in the world are WRONG 7 out of 10 times but still earn MILLIONS each year, how? Its how they manage losses. Over this programme you will be taught this but you will also learn from it by doing it.
So I hope that has helped with a small insight into how my mind was last week after a bad start to the week, I will now break down a couple of the trades on what we lost on and what my learnings were from these
GBPAUD Short – Taken Tuesday Morning Stopped out for 55 pips
We Entered this position on an expectation that the GBP will continue to fall, when we normally for 40-50 pips up pretty quickly as we did, I do normally tend to close them and bag the pips and come back to it later, but as I was on the move around London I didn’t get to keep my attention fully on the charts and missed the chance to move my stop to entry even, the GBP had a bigger pullback and unfortunately stopped us out before moving back down later in the week, so it was an error on my part, as a day trader you do need to keep close attention to the charts, so on reflection I should of closed it after being a good amount of pips up on the trade.
USDJPY Short – Stopped out for 40 pips
There was a level that I spoke about for the last couple of weeks that I would want to buy USDJPY after seeing a bounce from there, that was the 108.50 level which is a key monthly resistance level, We saw the bounce from that level on Tuesday and we took it long, Unfortunately we were stopped out on a spike, of about 10 pips before it shooting back up to hit our TP later on in the week, in hindsight looking at the trade, I could of probably waited to see whether we hit the 108.50 level for a second time before entering, but to me it met my requirements at the time, DXY was looking bullish, So to me its just unlucky we were taken out the trade before it moved on towards our TP, I have to accept the market was being a bugger, but notice I didn’t jump straight back in, I re-evaluated and went on to something I felt was a better chance for us to get pips.
So after a negative week I ensured I had a full day off the charts and didn’t look at one (Saturday) As anyone knows me Saturday mornings is when I tend to do my weekly analysis, but I done it on Sunday this week, its always good just to have that bit of time away from the charts because the last thing you want to do is overanalyse or get too caught up on it, I have reflected on my journal today, Identified a couple of errors in this weeks trading, if I haven’t of done the errors we would of probably finished up.
But this write up is to show you no matter what experience level you are you will still make mistakes in the markets, it’s about how you manage them and deal with them which helps you progress and move forward. I haven’t done any extra analysis to what I normally do, I am in a very rigid routine and it will take more then a small 11 pip loss for the week to make me change it.
Hope you all enjoyed the insight.