Restarting my FX Experience
By marketing on May 29, 2011 | In Forex Diary | 3 feedbacks »
Okay, hands down: In 3 years of Forex trading I lost around 200k to 300k US$. This is the actual amount that went from my bank account to fund my FX broker. At times I was highly profitable, so if you count the drawdowns from my peaks to zero, the actual loss would be closer to a Million bucks. Hey, but that's just theory - annoying enough to even think about it from this point of view.
Now, why would I still want to trade Forex? And why the hell would I believe to be profitable again? To be honest, to a certain degree it is addiction to trading (gambling). With more rational approach I do know how to trade and be profitable.
Follow up:
I just need to avoid lackluster performances and stay away from risking too much. No more desperate trading for the sake of trading. Longer time horizons with lower risk ratios. Staying away from the platforms when there are no opportunities around. Taking breaks and spending earned profits rather than always compounding them for risk increase. And so on ... the list of typical mistakes traders do, I experienced them all. Now, it is time to put my hard earned experienced and paid for self-eduction into work. It will still be a great challenge to pull this off. To make it more difficult for me to start and for my sake of reducing risk, I decided to start with a humble amount of 3500 USD to start with. My goal is to turn this starting capital to 4 Million US$ in a time frame of around 2 years. It means, I will want to generate 10% profit each week of trading, but I will only be doing so in around 30 weeks a year. I will not be trading every day. My new goal will be to look for profitable trades based on support and resistance in connection with even risk and sentiment. My drawdown limit will be 40% of last account value. Over the next couple of days, I will be outlining my strategy on my Forex blog. It's more of an diary for myself and is neither meant to be a signal service nor to I recommend to follow my strategies. As you know, FX and other highly leveraged financial products carry very high risks that can destroy your capital, instantly.
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