I hope anyone reading this has already read the ‘Part I’ that I posted at MeetPips.com. And if you’re wondering what kind of a title this post has—well, I really love the sound of this title.
I’ve been very busy ‘making myself busy’ these past few weeks: with studies, with work, with life, and mostly with my struggles as a teenager entering the serious world of adulthood. Serious! (But seriously, I was trying to be a ‘super woman’!).
All through these confusing events, I was not able to update my online trading journal regularly. So to start somewhere, I checked my mt4pips account (though my new account can be found here: czarinacleo) and analyzed my account statement. My latest trade was registered last March 12, 2010—with the same position but different TIME and RESULT. I bought GBP/JPY–BEFORE and AFTER–the USD Retail Sales Economic event during that time.
The trade I took ‘before’ the event made me a whopping 37 pips; but the trade ‘after’ the event, my pips fell down to negative 27. I call it an emotional trade. I let GREED rule over my trading skill and opened another trade after I got those gorgeous 37 pips. I let FEAR push me to press the button when that trade showed -20 pips—and stopped my trade with -27 pips. I was about to leave to lick my wounded pride in private when the darned pips zoomed up to 50! It’s like sprinkling salt to open wounds!
I decided to leave my trading for a while. But forex must be in my blood now, because I returned after 20 days. Haha.
Another glaring mistake that I noticed on my fated account statement: I did not use both ‘Stop Loss’ and ‘Take Profit’. I found this bad habit of mine in most of my earlier trades. And now that I’m just a little bit matured did I notice that ‘the more I trade without stop-loss and take-profit, the more I lose my pips’! Yikes!
Analysis of My Trading
• Emotions dominate and ruin the trading plan
• Trading without stop-loss and take-profit
• Paper Trading
Yep! I’ve started to take all my trades down on my notes! Since I included SLs and TPs in all my trades, the intervention of ‘greed and fear’ was minimized. Note: My paper trading technique was made successful through the help of InstaForex MetaTrader4 demo account. Unfortunately, their MT4 platform does not work properly on Windows 7. Shhh, I just gave W7 users a tip!
Anyway, I don’t recommend paper trading at all. There are advantages as well as disadvantages—unfortunately, the cons outweighed the pros. On paper trading, taking new trades seemed easier but quite unrealistic. You don’t do trading by just writing your trade alone. You can’t have the true ‘feel’ of trading at all. Personally, I find executions of trades rather stressful but exhilarating. Yes, seriously.
What are my future trading plans?
I will go back to actual ‘demo-trading’ to help me ‘de-stress’. I will also read more trading books to help me improve my trading strategies and sharpen my frayed nerves—hehe. Forex trading requires some nerves of steel. Actually, I have claws of steel… like Wolverine! Joke! Well, I’ll be holding on to these: “If there’s a will, there’s a way” and “If others’ can do it, why can’t I?”Share