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Mar 12

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Weeks 3,4 and 5

I am writing this retrospectively, but the pain has not faded!   What a difference trading REAL money makes to the decisions you take.

I’ve made probably every school boy error under the sun over the last few weeks. The crazy thing is some mistakes occur more than once even when you know not to do them. I feel ironic when I scold the dog now for keep jumping up at me, or the kids for bad table manners even when we have trained and educated for just the opposite. At my supposedly mature time in life when I am meant to be less reactive and behave with greater patience when faced with new challenges the same old personality flaws come up and bite you, but in this case the pain is financial. This self habitual destructive behaviour has to stop and will stop. Having a father as  PhD psychologist must have it’s advantages ?

Before I embarrass the world with my stats; a list of my typical trading errors with the associated emotional responses :

>Trading counter trend too early in a cycle – IMPATIENCE AND ARROGANCE

>Jumping the gun, getting stopped out then seeing the price move the desired direction – IMPATIENCE, ARROGANCE AND FRUSTRATION

>Coming out of trades too early at first retracement and then seeing price continue onwards – FEAR AND FRUSTRATION

I have also made some smaller, but not less costly errors in trading setups (too tight stops, too risky trades and trade size calculations)  but I am not getting hung up these too much as I know that I will naturally eradicate these more technical errors. It’s the emotional stuff that needs to be put in jar and stored in a cupboard whilst I’m trading.

So, to the stats :

Trades : 63

Profitable Trades : 23 (37%)

PIPs : -2064 (10% of account equity)

Most of the equity loss was in week one, after that I downsized my trades to 0.1-0.3% of equity. But the numbers don’t lie, if I continue in this vein then I’ll be queuing up at the job centre come end of April. So things will have to change, I have to be more professional, I need to stick to my rules of engagement.

So it’s been a nightmare start to this new life, it’s been an expensive lesson that needed to happen. Without this painful set of trades under my belt I don’t think I can come out the other side. I have some coaching from a professional next week that is overdue and up to then I am taking a break for 2 days. Look over what I have done or not done and LEARN from it.

So below is what could be considered the worst trade I took on. Comments welcome!

Worst Trade Ever ? GBPUSD 120310 -64pips

Worst Trade Ever ? GBPUSD 120310 -64pips

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Permanent link to this article: http://intradayforextrading.co.uk/2010/03/12/weeks-34-and-5/

2 comments

  1. FXTraderPaul

    Hello Jimmy,
    Well done on your blog. And congrtualtions on spending the time and energy to analyse your mistakes and make an effort to learn from them.
    Good luck with the journey…I shall be watching!
    FXTrader Paul

  2. Jimmy_FX

    Thanks Paul!

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