Thursday April 30, 2015

I've Had Some Losing Trades, Now What?

Persuing Peace In The Midst Of Pain

Today, I have been rocked to my core. I've made 4 trades. 1win, 3 losses in a row.

I supressed the urge to system hop, and I suppresed the urge to just quit. I immediately put on the next trade.

Don't get me wrong- I am feeling the pain and the pressure, because I make a significant portion of my income from trading. I *MUST* make money trading, PERIOD. 

I am the primary trader for both The FAPWINNER Live Trading Room and The Million Dollar Trading Challenge. So, when I don't trade well, the whole world knows, and then they starting chatting in chat room, blogging and slamming me in forums. Geez, it's tough being "The Floyd". Everybody expects you to have winning trades all the time. Can I be honest, I secretly expect that same thing...

Todauy has been, up to this point, has been tough. I will go for a few days without losses, then, as if on que, the FOREX market becomes a pip collector and takes away my pips, simply because I have not been losing. I am sorry. I broke the code. Ther code that says if you are in the 95% that lose money, you cannot escape your class. What was I thinking? I will tell you. I was thinking that I actully had graduated to becoming a member of the elite 5% that actually make money. Silly me. The market is a great humbler.

But I still took the next trade. Becasue all I am really looking for is one good trade. Really? Yes. one good trade.  

So.. What happened? Why the string of losses Mr. Guru? 

Well. I took trades that I thought was going one way, and the market went the other way. Simple. 

That's it? Yep. That's it. I learned the following lessons, and they have served me well. Maybe they will help you, too, when you are dealing with drawdowns, and are thinking of system hopping, quitting or worse, taking some really stupid trades to try and "get your money back". 

1. Trade with a risk/lot size that you will not commit suicide if you lose. 

2. Don't trade with money that you cannot afford to lose. 

3. Trade according to your trading plan, and do not deviate from it during trading hours. 

4. Keep a trading journal, and review all won and lost trades. 

5.  Know when to quit before you start. 

6. Walk away if you feel like you are getting sucked emotionally into to trading. Just walk away. 

7. Accept your loss(es), and move on. Live to trade another day. 

8. If everybody could trade, they would. You are special, because you ARE a trader!

When I am done for the day, I will post the chart for the day, and update my stats. 

Thanks for reading and following my blog. 

Best, 

CII