Over trading – lessons learnt
7 pm.
I’ve often heard advice to the effect of trying not to “overtrade.”
My experience using a forex broker and trading over the past three years has been that overtrading is not necessarily a specific number of trades, but just making trades beyond your account, mental, or even physical stamina.
On my personal ‘Black Tuesday’, I made 51 deals. At one point, I was long 10 lots on a day that did nothing but go down. Ended up costing me almost nine grand. To some, this might not seem like a lot, but it amounted to close to 75% of my trade equity. I kept buying all the way down, looking for a bottom that never happened. When I puked with about fifteen minutes left in the session, the feelings of disbelief, dismay, anger, sorrow, and just about any other negative emotion you can name were stronger than anything I had ever experienced. It was sort of a numb sensation.
For several days prior to this, I had successfully used the same strategy, found the bottom, and used the late session retracement that is fairly common to make some nice money. When I tried it on a day that didn’t retrace, I got whacked, big time. Very expensive education. I have spent the time since trying to dig out of that hole, and regain my confidence. Read more…
New experiments and trades
11:55 am. I started exploring the Forex Trading Pro platform a little bit. All the video tutorials seemed to focus on the actual practice of trading, or explanations of what Forex is. Not really what I was looking for. I did find some worthwhile stuff in the help section. The best thing so far is a “Restore Default” option under the view menu. Now I feel secure knowing I can…
Read more...A bunch of new demos
I’m always looking to try out new brokers and systems, and although a lot of them are using Metatrader, there are a lot which use different systems. Plus they have a range of trading conditions, prices, bonus etc that are worth exploring. I picked MIG Bank after reading their latest press release on prweb.com about offering CFDs on demos. Pasted excerpt: Hisham Mansour, CEO of MIG BANK, was quoted in…
Read more...Still learning the ropes…
7:15 am. I’d say the biggest thing I learned about fx this week is that, looking at the charts, it seems just like equity futures. Support and resistance look the same, and software offers the same tools and indicators. The differences are in the small details. Futures have a commission, fx has the spread. These are two different terms for what is essentially the same thing: It costs money to…
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