Missing Person Report
by Trader Rich
I have been missing in action since my last post, 15 days ago. I needed a breather from blogging and trading. I don't like the fact that I've been neglecting the site nor the emails I've been receiving considering the time and work I've put in over the last two years. I'd hate to throw it all away. Unfortunately, there is no way of knowing if this is just a temporary spurt of motivation or if this is the beginning of the end.
I did trade live last week and managed to produce my best weekly return this year, a little over 2% of my total account balance. I'm only trading the GBP/USD and haven't been following any other pairs. If you asked me what the USD/JPY was trading at right now, I'd tell you that I didn't have a clue. Who knows if last week's return was nothing but luck; I'd like to think that it wasn't or if it was at least a combination of skill and luck.
I just wanted to say that I am alive and slowly trying to get back into the thing I've been so involved and immersed in for two years now, trading forex and blogging. I know I said that I'd give myself at least 5 years to develop into a "real" trader, but if I've lost the motivation and drive to accomplish the goal of trading for a living, it's probably best I give it up. I'm not at that point yet but trading the last 5 months has been very trying and I'm just being honest and practical about everything at this point. After all, I also have a full-time job that needs attending.
I'd also like to thank Nikhil for his recent email encouraging me to not give up. Here it is:
Please continue with your forexproject blog…. you’re doing a great job.
Never give up… it takes at least 2 years to master forex trading…
Think of your losses as the cost of learning forex trading. Trade with mini lots until the 2 years is over.
Here are some ideas:
Try Carry Trading…. I have trades from a year ago which are still paying me interest…
Try Forex Options … great for event trading
Try Scalping…. pip at a time… get out of a trade after you make 5pips
Try Crosses…. they are more trending and less volatile than the majors
Try Gold Trading…. the other “currency”….
Try Buy-and-Hold…. look at long term trends and take mini lots.
Try Diversification …. put mini lots on multiple currencies to hedge your trade.
You have only touched the tip of the ice berg with regards to currency trading.