Sep 282012
 

I fell off the wagon today.  The one day of the month I tilt and the market made me pay for it.

I was reluctant to post about this, it is quite embarrassing, but I consider it part of my punishment.  This was a wake up call.  I did well this month and got careless at the end. To make sure this doesn’t happen again I’m going to work on the trading plan.  I’m not rewriting it or anything, but I do want to add some more “watch out for this” so I can try to avoid my mistakes.

On the bright side, I made a lot of progress this month and except for today, traded pretty well and the overall result is positive.  I’ll continue trading 1 lot next month and that should give me enough trades that I can decide if I want to increase size to 2 lots or do another month with 1.  I’m in no hurry.

 

  5 Responses to “Fell off the wagon”

  1. Morning Michael, you are doing a pretty good job. Congratz!

  2. Sorry I don’t get you… by the chart I guess you lost 20 ticks. is that right? If your size was 2 then you lost $500.. is that right? If yes then I have question – what is your daily profit target if 500 loss makes you amend your plan? I am not being sarcastic just really don’t get it. You know that normally you need about 10K balance to trade 1 car. So if you had 20K then 500 loss is 2.5% which is acceptable. you should be able to make this up next day or two if you take it easy…… From your grief it seems however you don’t have 20K which means – you broke the very basic rule of money management in very beginning getting out to trade live with account smaller than it ever should be…… So you need to rewrite your plan completely from scratch… that would be my advise.

    I watched your struggle for years on Ninja and BM forums and I just want to help you..

  3. Or perhaps I misunderstood the chart (I don’t use Ninja).. Was it 2 pt loss? You bought and then it moved against you, you averaged down then it went very far down but you sat on your hands getting through the pain and then market turned around and you bailed out .. few bars later it got up (you could’ve made some profit)…

    I am guessing here – you don’t use stops either do you?

  4. Max – The reason I titled the post “fell off the wagon” was because I did something that was not in my plan. I think we all do this, I don’t think I’m the only wrong. I’ve been working on using 6-8 tick stops and in this particular case I realized that my entry was early and when I saw the right entry I added the 2nd. This is not in my plan. What I should have done was just “pretend” I entered when I was supposed to and exit when I’m supposed to and accept that the win would be less than it should (since I entered early) or the loss would be bigger than it should. Instead I didn’t want to take the loss and I moved my stop. So two mistakes from me.

    When I said I would update my plan, I specifically said “I’m not rewriting it or anything, but I do want to add some more “watch out for this” so I can try to avoid my mistakes.” So as an example of this:

    When I realize my entry is too early, I will NOT add to my position and I will NOT move my stop. I will manage it as if I had entered it properly which may result in a smaller win or a larger loss. I cannot expect to right the wrong of entering early.

    So that is what I meant. I have limited time to post so I try to be brief and I apologize if that could give the wrong impression sometimes.

    In order to use 6-8 tick stops, and sometimes even loss, one has to be very precise in the entry. And that’s the part I’ve been working on. When my trades work they typically have very little MAE so if it goes against me I’m wrong. Either my trade idea isn’t going to work or I botched the entry, but in either case the best is to be out and re-evaluate.

    Thanks for your questions and comments.

  5. ok.. I already deleted 2 versions of the answer…….. so I’d try my best – perhaps one day you’d look at this thread and this chart and think – why didn’t pay more attention to what Max said.

    If I was a trainer selling trading courses I would probably explain it better… but you are just on wrong territory completely.. you need a breakthrough mate.. you stuck in this for too long.

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