Thursday, November 25, 2010

Why I was Busted These Days?

I want to record my thought my reflections when trading. I encountered many obstacles so much that it effect my trading consistency.

I remembered at the beginning start of July, I trade good. This month I trade most of signal without thinking of failure. Entered almost every signal appeared without slightest doubt. I put Stop Order, so when the price came to me, it's filled. Put my Stop Loss in tact and let the market decided. My winning ratio was horrible. In fact, it's only around 40% or less. I was not afraid to be wrong. I trade trade and trade. There's almost no single day without losing trade. No afraid being stopped out. Some days I just lose so big at start but in the end it kept me green. Winning ratio per day almost 100% perfect. The result was marvelous, I was on top of my performance (I think).

Come August, at first I trade good as usual. Until one day I blew out, breaking the rules against the trend. Need many days but surprisingly I recovered with quarter profit of previous month. I though nobody on earth can stop me profiting in this market.

September was the outlier month. I trade with discipline, undiscipline, everything and the result : incredible. Of course my winning ratio per trade never improved. Still around 40%-50%. I didn't care less. Every time it stopped out, I was ready for the next setup. 2,3,4 even 10 losses didn't budge my emotion. I kept trading and the result astonishing. I felt like a money magnet. Everything I touched become $$$.

October came, smacked me to earth. I trade against the market and losses big. Everytime I recovered and trade with my old setup, the market like knew my Stop Point and blasted it there. This is when my mental barrier crushed. I couldn't stand losing 10 losses in the row. In fact, I couldn't trade well after 5 losses. I was down a lot. I scared to make mistakes as it costs me more money. So I just letting dozens of opportunities walked away in front of my eyes. Just staring this price soared and if it's September, I would gladly enter those profitable trades. After watching that my edge still working without actually doing it, I collected my strength, and began to do it again. I was crushed again. Scared, missed opportuinites, Got up, Crushed, missed opportunities.

September, after started with big losses, I thought I was get overed with it. Wrong, the cycle wtill continues. Worst, after wining streak, I sabotage myself with agains the trend setup. Until now, I couldn't resist temptation to buy low, just use Micro Lot to minimize losses.

" Danger from wrong doing is always come when I don't realize it "

Lots of missing opportunities, bad trades, poor executions. I will be back in basics. But today, Bank Holiday, I still don't trade. Reading Trading In The Zone Again by Mark Douglas.

3 comments:

  1. well written, not the book but your story of trading, keep it up.

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  2. Thanks RCM :)I think the book is also good.
    Nice blog u have too

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  3. "This is when my mental barrier crushed. I couldn't stand losing 10 losses in the row."
    Good, that means you're thinking clearly. No one can stand losing ten in a row. Most likely 10 losses in a row is a sign of a bad trading methodology. Again, listen to what your feelings are telling you.

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