Today Big Losses Again

I short the EUR, thought it might give me 10-20 pips. Short at 200 pips pips of the day. Well, lesson learned. EUR surged almost 300 pips today. If unlucky, another 100 pips to 1.3470 may occured. If that happened, I must closed the business for good. So, I still want to open the business, I bailed out.

What I learnt over and over again that statistical odd is not useful if there's no good Money Management. How many times EUR moved 280 pips in 1 day? Today's the example. Not only it broke every resistance, but also it never retraced back even for 40 pips!!

That said, I missed Grain in Play, Crude Oil (though doubtful since I may stopped out 5-6 times before making profit).

I will refill my account tomorrow. I have tendency not to trade well if I had depleted account, though I almost never trade full margin.

Licking my wound tomorrow onwards. I had speciality on massive winning streak day. It all changed after I changed my trading style, looking for home run. Almost all my home run busted before riped. Sometimes I still amazed how I can profit 23 consequtive days, with zillions of Stop Losses, still prevailed the green day. Of course the profit was small, around $200 per day. But I once had 23 days of $200. It's $4600!

I remembered day after day grinding the $$$. Quit after having a green day, Resume trading if not having profit yet. Feel awesome, happy. Feel very enlighted when finish early, pocketing some $$$. Just play around for the rest of the day. Repeat the process tomorrow. And it happened when I was not very knowledgeble. Taking profit very early (in my perspective now) cut losses small, trade like an idiot. Meaning no S/R, trendline, or other things. Just entering when there's triangle breakout, exit 15-20 pips, end of day. It worked. Of course there's some massive losses. Took around 1 week profit per losses. Still netting 1 or 2 weeks profit per month.

Today I wanted to change. I wanted to trade wider profit. Means more Stopped Out, Reducing Green Day. But I found out, the more red I made, the more my mentality depleted. Day Trading is not like become a smarter guy. It's just mental game. No matter how good the edge you have, if you can execute with fine manner, it's worthless.

Day Trading for me like an operator. No thinking when trading. See the setup, enter the trade. Worked, repeat the process. Failed, repeat the process. Over and over again. That's why new system or trading new instrument need time to smooth it. Executing the trade itself need skills. Execute Crude Oil different with Eminis. Also different with ZS.

So, I may have big losses on 2011. But no matter how bad, if I can survived and keep trading good. I may prevailed. Assuming this, one newbie and one trader with bad performance (like me). Newbie already learn theory and trading demo for a while. Both of them now trading real account, same amount, same setup. I bet the newbie will have a problem since he's never executing the real trades. While the already-trader will have no problem executing it. I used to have Stop Losses, I used to have big losses, I used to have good profit. I used to have operating error. All of it actually a worthed skill. So, tomorrow onwards, winning streak will come again. If not, then it's just delayed. Prepare to grateful with my result :)