What Did I learn This Month?

Posted by FxEpic | Posted in Forum | Posted on 29-05-2010

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4/30/10:

Ok So my Weekly Question: What have I learned? I learned that I did not fully process my Risk when I took the GGT that wiped out a substantial amount of my Goal this week. That is, I entered the trade with the same amount of lots that I normally do for the EUR having about a 10-12 pip max. The Risk that day was 46. So the risk here was in the order of 4 times my usual max. I was way out of my league as to my EM. It was a good lesson. What should I have done if I wanted to take the trade? I should have reduced my lot size proportionally, that is by at least a fourth. So the Key is to keep my Risk Tolerance the SAME but vary the lot size to match the trade. This trade required 46 pips to breathe so my usual 2% should have been reduced to 0.5% to wind up with the same risk tolerance. An Easier way to do it (in Oanda) is to just devide the units by the ratio. So in this case, where my tolerance is say 12 pips max but this trade needs 48 (for easy math) then the ratio is x4, so I would divide the No of units that I normally trade by 4. Lesson Learned. Selah.

[5/9/2010 11:26:39 AM]  (FxEpic): Ok so, What have I learned this week? I learned that there is no substitute for experience. I learned that if you do not learn from experience (either your own or from the sage wisdom of others) then you are doomed to perish in a vicious spiral downward. To this I will add.. Thank you Dan for allowing us to drink from your well of experience, and for caring even when it must seem that we are obviously going in the wrong direction …repeatedly. I learned that taking small steps (read risk) add up to big gains when compounded, and the view from Friday’s close to Sunday’s open is Like looking out from a Mountain top on a beautiful Spring morning. So the question remains, why do I stray from my plan? Well I got a wake up call from the reaction of a Great friend (who does not trade) to whom I showed the 10% per week spreadsheet. His answer to this was “Well, if this don’t make you behave then I don’t know.” That’s it. Plain and simple. As Dan says, “This ain’t Rocket Science” TTT (Trading Takes Temperance). Selah.

 [5/16/2010 11:23:37 AM] (FxEpic): So what did I learn this week? I learned that you do not have to trade every day. Some days you make more watching TV, playing Golf or goofing off rather than taking a Trade. The thing, I guess, is to know when that day is. Selah.

 [5/23/2010 1:28:48 AM] (FxEpic): It’s Sunday so here’s my rant, What Have I learned this week? I learned that I have not learned to learn from the lessons I have learned! I learned that there are no “do overs” in Trading. I learned not to mess with your account settings when you are in a trade, to wit, I played with my margin settings in Oanda just to see what it would do to the Margin Percent… Well that triggered a margin call….oops….taking me out of a long EUR position that was nicely up 18%. Selah.

5/30/10

Posted by FxEpic | Posted in Forum | Posted on 30-05-2010

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It’s Sunday and here’s my rant:

So what did I learn this week?  I learned that I love to trade the Forex market. I learned that it is an exciting way to make a living. However, I learned that you are only as secure as your last successful trade. How do I view the market? That question wafted through the honeycombed chambers of my mind this week. Do I view it as an adversary or do I view it as an ally? Most times I view it as an adversary. Why is that? The times that I was not intimidated by the market ….feeling more like a friend…. were the times that I was in the “Zone” and able to ride the waves as they did their thing. So then, it is for me to learn to cultivate a friendship, and build an allegiance with the Forex Market so that I can listen to its music and dance to its songs!! Selah.