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Followed the Rules and Lost |
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Monday, September 18, 2006 |
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I was short 3 lots on the GBP/USD since the European session today and I was just stopped out on all lots. I lost a total of 111 pips using my H-system or $1100. I followed my rules without any deviation and though it sucks to lose, I've accepted it. It actually feels easier to lose when you follow the rules.
Some of you may not be able to relate to this analogy but I find this similar to when you finally take financial responsibility for your debts. I have huge student loan debt and when I graduated, I put my loans in forbearance which is basically like saying, "I'll pay you back when I have a good job and when I'm not spending all of my money at bars." Even though your loan is in forbearance, the interest still accrues and you'll just have to pay back more later. Eventually, I decided to get my *&!# together and made a plan to pay off this debt within 12 years. This was 5 years ago and I actually feel good writing that large check every month to the student loan lenders because each check gets me closer to my goal of paying the loan in full. If I didn't have a plan, I could have just blindly started sending them the minimum payment which as some of you credit card debt holders know is the kiss of death. Since I had a plan, I started sending them a lot more than the minimum payment, actually it was almost double the minimum payment. I was putting a substantial amount each month towards the principal and not just the interest. My analogy is that if you have a trading plan, even if you lose, you kind of win. If you want to win in the game, you have to be willing to lose and if you can accept that fact, you won't get bent out of shape when you do lose. This loan was an investment in my career and if I didn't have this education, I wouldn't have this wonderful full-time back breaking job. Even though I have a stressful job, I get paid enough to pay all of my bills and save some money. I get paid a lot better than other people I know but if I didn't have the education that I have, I may be living paycheck to paycheck or I might not own a house. So it's a fact of life that to make money, you have to be willing to spend money.
Forex Trading
september 2006
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Last Updated ( Monday, September 18, 2006 )
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