Forex Trading Performance

June 23, 2006 by Trader Rich

This week didn't turn out all that bad mainly because I didn't lose.

News Trades accounted for -51 pips or $51.00. Remember that I'm only trading a mini-account to test out the platform.

I started discretionary trading again this week and overall profited 48 pips or $418.20.

I felt more comfortable as a trader this week more than I ever have but it was not without mistakes. My biggest mistake that I've had problems with in the past reared its ugly head again; Closing a position due to fear. I really only did it once but it cost me and here are my trade logs that document this fear:

6/18/06 17:43 EDT -> Sell Trade on USD/CAD at 1.1220/1.1225.
6/18/06 17:43 EDT -> Set fixed exit to 1.1260
6/18/06 17:43 EDT -> Set fixed limit to 1.1050
6/19/06 19:43 EDT -> Close Position 1.1212/1.1217

So I am out of the position. What happens next?

6/20/06 - USD/CAD opens at 1.1218, closes at 1.1167
6/21/06 - USD/CAD opens at 1.1166, closes at 1.1074, reaching a low of 1.1033

So I gave away 170 pips. That's pretty huge. That is $1700.00.

I'll admit that I haven't forgotten this or I wouldn't be mentioning it but we have to learn from our mistakes. I don't think this affected my judgement the rest of the week because the very next trade I profited 92 pips.

The 1 problem I have with making this mistake is that it is becoming a trend. I must force myself to think like Forex2Stay.

Forex2stay had these great words for me that I share with you now:

For me it's all about the mindset. When I enter a trade
it's not about how much I can win, but how much I can lose. Once I
figure out my SL, and determine if that fits my MM, I'm okay with the
trade. Mentally I have prepared myself to lose 1% of my account. At
this point I'm done with it. If I lose I lose. I've already mentally
prepared myself for it. I know you've heard this before, but it's the
price of doing business.
I just view it as an "Operating Expense".

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