Forex Trading Profit Up 9.6% In February

I ended the month of February up 9.6%.  This betters the previous month of January where I was up 6.8%.  I consider it an achievement to be up 17% so far in 2008 but I’m not getting ahead of myself to think that the rest of the year will go like this.  

What did I do right this month?

1. I never risked more than 2% on any trade. 
2. I knew my stop loss before entering a trade, sized my position, and never moved my stop on a losing trade.
3. My reward to risk was typically around 2:1.
4. I traded one of my systems pretty consistently (missing some opportunities) and stopped trading two others when I found I was being too inconsistent with following my rules. 

I think it was a good idea for me to stop trading two of my systems this month.  I may have put them into the mix too quickly without fully trusting them.  As I mention in #4 above, I was being inconsistent with my rules and found myself breaking them more times than not.  Instead of sticking with them using real money, I moved them back into development and continued trading them in a demo account.  I think that if you have any doubt in your trading method or system, it’s best to discontinue using it until you trust it. 

What did I do wrong this month?

1. I exited some positions before they hit their target.  This was due to fear and fear only.  There is a simple cure for this.  I should just close my trading platform and open it again only once the position has closed.
2. I’ll say it again but I started trading a couple of systems before I was ready.  It could have turned out bad but it actually did not this time.  They systems were profitable but I was still not comfortable with the methods I used in obtaining the results.
3. I sometimes got lazy or forgetful this month with one of my trading systems.  I failed to place an order when I should have, costing me profit.   

If you had success or failure this month, I think it’s important for you to find out what you did right and what you did wrong.  It’s imperative to evaluate your performance so that it can be improved upon. 

Explore these other Forex related posts:

1. Six Percent Loss This Week
2. How Many Times Have You Exited a Position Early?
3. Dooku Forex Trading System
4. My Biggest Mistakes This Month
5. 2 Percent Risk with 2R Multiple

Popularity: 4%