Trading in La La Land
May 10, 2006 by Trader Rich
I've said this before but there is no easier way to take the emotion out of a trade by placing the trade, setting your stops and limits and going to bed. I made a decent trade last night going short on the EUR/JPY and woke up to a nice surprise, +42 pips (limit reached, trade closed.) I'll post the journal entry for this one later. I still see a favorable trade lower but I'm waiting for certain levels to hit.
Today should be quite a crazy day to trade. I already missed a trade at 7 this morning on the AUD/USD that I was going to go long on but thought twice because of a resistance line up above. I'm trying to show some discipline by not going into the trade 2 candles late. By then the risk/reward isn't what it was and it's a good way to lose money.
Have a good trading day and be safe.
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Hi Rick,
Hope you will make it. You are motivated enough.
Honest question, do you really think a mentor will help you?
It seems to me, you results wre much better in your first couple weeks of trading. Any idea how come?
All my best,
Wim
Hi Rick,
2nd part of my message
Couple of years back, I have tried almost everything, A signal service, bought a buy and sell program for ONLY 4K, always I tought it would bring me money but I guess you know the answer already, No money, always lossses.And always, I was I was blaming myself to rescue the system or the signal service.
I didn’t understand myself but that were the facts.
I kept losing, 2 accounts were going bankrupt, what was I missing?
In my 2 cents understanding, I did learn couple of important things.
1) No day is the same for trading what makes it difficult for trading systems.
For example, it is not because eur/usd gains 200 pips today, it will gain another 200 pips tomorrow;
As a day trader you have to prepared for every posibility, even when you lose..
Another example: currently, the euro/usd is gaining almost every day, do you really think it will keep going up like this? Well I’m waiting to go short; even when my mechanical system tells me not to do.
In my almost 5 year of trading FX, I can tell you that a combination of a mechanical simple system and your own judjement will give you the best results.
Make your ow judjement on trades!!!
Another example: Currently; the FED rate annoucement will be at 18.15 est, what if you have a moving avearge system wich is moving around it’s ma’s; If you blindly follow, you will buy and sell every hour (depends on used timeframe)because your system will tell you to do generating 150 pips of loss and the market is not even moving…
Damn but that’s how FX works.
Systems will work only part of time, what system you use does not matter, just check out and you will see.
All my best in your trading.
Wim
Wim, you are definately correct that I was doing really well in the beginning. Actually I just looked and I did pretty well for the first 11 weeks. The thing is, I didn’t have any set of trading rules and I think I went searching and searching after those first couple of months. Everything I traded then was on discretion only. I had no rules whatsoever. Do you think that is anyway to make it? I’d really like to know if you know of anyone that makes it with no rules and on discretion only? It is a serious question because I’m wondering if maybe that style was working for me. The thing is also that I was really only trading 1 lot at a time then. hmm.
Hi Rich,
Do you really think you need a set of rules? Who will guarantee you that this set of rules will always work? I think the best combination is again your own judgement (how does it look to you!!!) and some indication (know where you are), personallly, I use 2 ema’s for it.
As you tell in your comment, yes, you did make money, do you think it were 11 weeks of luck?
Only my 2 cents but your results speak for themselves, first 11 weeks were ok.
Best and good trading,
Wim
Wim, sometimes I probably read too much and feel bound by what these so called experts are telling me. Your probably right. I guess what I think rules can do for me is to give trading a level of consistency.