back in the game, AND still learning

[richard dee]

I have been doing FX for about 10 years, off and on. I learned and lost... I feel that I gain much knowledge. As we all know, we usually lose quite a bit (of money) before we start learning.

I'm back in the game, but just paper trades only. I need to build up my confidence.

I attached my last two weeks of play-trading. I don't plan to start with 50K, but I have before (not a good idea! as you know). I will probably start with 5K, or less.

I read someone else's blog about making 2% a day (average). That is pretty much my goal (10pips/day, minimum).

I just have to keep to my rules. A few that are very important are: don't be greedy. just '2' pips is not bad. wait at least an hour, if something doesn't feel right. there's always tomorrow to trade.

The biggest for me is patients and the greed factor (or trying to make up losses with chancy xactions).

The two losses you see in my last two weeks were due to not being patient, and just jumping in, because the screen was open.

please share your opinions with me. I hope to learn and share with all of you here.

[capsmart]

Hi Richard
And welcome to the forum.
I watched your trades and noticed that your big losses are 5000 each time, meaning 10% of your capital. This, (combined with the 2% profit target per day) I think is too much.
Just 10 losses in a row will ruin your account and this is something we do not want to see again and of course if you could make a 2% a day on your 5000 account, compounded for 200 days would give you an end result of 262.487 dollars or a gain of 5249% (because of compounding it is not just 200x2%)
Having a larger stop loss is not a bad thing if you have good win/lose ratio.
Let's say that your strategy dictates a 10 pip profit target for a 100 pip stop loss.
Every time you win you make 10 pips every time you lose, 100 pips are gone. If your system has a 90% win/lose ratio then from 10 trades you will win 9 (9x10) =90 pips profit and for the 1 losing trade you will lose 100. End result, even if you are successful 90% of the time is -10 pips. Hmmm not a very good thing after all.
If you could manage to have an 80% win/lose ratio with a 50 pip stop loss then 8x10 = 80, 2x50=-100, end result -20. Hmm even worst.
Just think about it.

[richard dee]

the 5000 loss was due to not placing a stop-loss. but again, right now, I am practicing with a different target and with a different confidence level. Of course, with real money, I have to play with the same rules and not deviate. Hopefully, I will learn something from you and others with different perspectives.
..
..
IF, I manage my minimum 10-pips a day, with keeping my rules, I will be good. IF, I deviate, then that's when I usually fail.
..
YES, I agree. One or two losses could bring me to a negative. The way I see it, that is the same way with taking any chances.
..
..
I just hope the next few months, before I go with a REAL account, that I will gain the confidence and new learning that will pull me forward.
..
..thanks for your thoughts on my last two weeks. Hopefully, the next weeks will show some promising calculations on my side.