By Far, the worst month of discipline trading. Well, not really discipline actually. I was overtrade again... This time was not very worst but still bad thing.
I was down around 4% this month. Not that bad actually. But if I still trading like this, there'll be financial disaster.
I remember the best month (last month) and I'll take the good thing about it:
1. Stop when already have decent profit (around $200 - $300)
2. Single size on every trade
3. Not squeezing too much ticks (exit too early but still in good reward ratio)
And what's bad today and I won't do it anymore:
1. Overtrade, too obvious
2. Crazy target, $10000 is too high for me. $5000 is decent
3. No max limit loss. I kept trading until see a profit
4. Too long letting profit run.
How to do it on next Monday:
1. Mechanical CL and TF system with little profit taking. Around 2:1 Risk Reward Ratio.
2. Limit Maximum loss on $500 per day. No question asked!!!
3. Taking minimum $200 profit.
4. Only trading 1 contract, no question asked!!!
5. Reasonable Profit Taking and each day performance is treated separately.
I realized this loss because of pressure at least I have a Break Even Week. Unfortunately, the market won;t allowed it. Worse, I don't took the $500 max limit loss per day.
So I will adjust the profit objective:
12 remaining trading days : $200 minimum profit target per day = $2400 - $700 (current losses) = $1700.
A very modest profit, but achievable.
See you next Monday and have a nice weekend :)
PS: Please share your worst week for applying the discipline trade. MBA, do you have similar experience with me? your share will be very valuable :)
I'm on a losing run for 4 weeks... tried to recover every week but it didn't work no matter what I tried. All I can say is that you gotta be careful now but not scared. I was both careful and scared which affected my judgment. Given your experience, I'm sure you'll do fine. Good luck with the recovery next week.
ReplyDeleteTq FFXD, I must say there's worse week than this week. Being discipline on trading every day and you will realized what went wrong. My system is incredibly reliable. Even for today's trade, there's nothing wrong in it. It's human error and my mental statement that pressured me to have a green week. And instead I have a red month :)
ReplyDeleteMay I aske you something? If there's system that can give you opportunity at least 1% profit every single day? Will you take it? Today my system give opportunity at 2% profit and I won't take it :(
Next week will change. Thank God for losing
Good luck with your journey too. I trade currency also and when it's bad, it's very untradable.
If a system can make 1% everyday, I'll gladly take it. It means I would be profitable and more importantly, I'd be consistent. But the problem is when I make 1% for a few days, I'll try to raise the stake to make 2% since leverage is already there. Also, when I'm up by 1%, I tend to think it could get me 2% and instead it goes back to 0% and then -1%. The bottom line is that the market always acts rationally... it's us who sometimes don't. :)
ReplyDeleteYes, I agree with that. That's why yesterday's result must not interfere today's result. That's what consistency come from. From the first time, my system always give me at least 1% of profit. Every single day, the profit come and gone.
ReplyDeleteIt's impossible for expecting profit every day while wanting a big home run in every trade. That's just didn't make sense.
Limit Number of Trades and Limit Maximum Losses is the way to go :)
systems also need adjustment when market condition changes. a system works on couple days doesn't mean it will work together, review the system you are using every day/week/month to see if it's still working. understanding why your system working from bottom up, and think of the worst case everytime, this will help you limit your misstake when it does happen.
ReplyDeleteHi RCM,
ReplyDeleteIt still work actually. You're right there's a slight change to optimize my system. If I applied daily limit max loss, this week I still booked $500. Well, I always learn more when I lost :)