Saturday, December 29, 2012

How to choose a good FX Broker?

Stay tuned. I am preparing some materials at the moment.

Trading Psychology

The past 2 months is a great example of how a bad mindset can affect your trading results.


My equity curve plummeted in Nov and Dec 2012 because I shifted my focus on trading set ups to trading for money. Because I wanted so badly to make 1000% return a month (after observing how so many people do it on Demo Competition, I wanted it as well), I over-traded, and lost sight of my money management rules. Initially, it didn't occur to me that in order to gain 1000% return a month, my level of risk will be OTT (over-the-top). Only hit me when my DD hit 70%.


After the whole fiasco, I accepted the fact that my method of trading will not bring me 1000% a month. Even if it is possible, it means that my risk will be extremely high.

My trading method can give me 1 - 2 good set ups per day. Because I only have 1 - 2 good opportunities, I have to wait for the trade with the highest probability. 

Well, at least now, I have been profitable in the past 2 weeks. It is not difficult to be profitable, I figured, when one focuses on trading the best set ups, stick to a sound money management plan, and stop expecting to make 1000% a month.