Some money management rules broken
I am going through a rough period now and trading is much more difficult for me. Once you lose confidence it can take time before you regain it again. M1's are just totally unreadable to me and I needed to switch to higher timeframes (it is working!). I have been a victim as well as the main actor in this crime called overtrading. My money-management rules were broken several times and I just could not take it anymore. After a few years of LIVE real money trading in a market I can call it a stagnation or in better words: the challange! When things do not work the way you expect them to work and you already have pretty realistic goals it is time to think again and ask yourself what you are doing wrong. I know what I am doing wrong, here is the list:
- Risking more than 1% per trade if you trade 20-50 trades a day is simply nuts
- Having a book of 50 trades per day if the mkt vol. is average and your average is usually 10 – 20 trades is – wroong
- Not being able to lower the size when trading poorly – wroong!
- Not having a limit for max. daily trades – wroong!
- Not having the portfolio of different assets you can trade (pairs & level IN PLAY) so you are desperatly dependent only on one product/pair – wroong
On the other hand – my strategy, my niche, my edge – there is nothing wrong with that. Technical plays are still working pretty well and as long as someone else doesn't invent new form of supports and resistances I am gonna stick to my strategy (just have to adjust to the higher TF). The problem is something else – it is me. I have been profitable for past 3 years so what the heck has changed? My mentality, my perception of good and bad trading. In order to get fully back I need a rehab – rehab of decreased sized trading, AAA plays and 100% IN PLAY setups. Brick by brick, pip by pip. Time to switch my trading models to defend – from tiger to panda trading 🙂
Ok, now back to technicals. Right now I like these pairs. Hope you are going to make something out of it 😉
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