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That really sucks, I remember my first years I blew up 3 accounts doing exactly all the mistakes that you listed:
Forcing trades, chasing the market, overtrading, revenge trading with big positions to try to make up the losses just to lose more...
And I also knew what I was doing and knew I wasn´t supposed to do that, how come we do it?
And I still do it mildly somedays... The last couple of days, for example, I would start the days doing 2, 3 profitable trades then would give back all profits and some more. It had been a while since I had losing days, I would at least be a bit above breakeven. So in those last two days I did exactly that, I would lose the profits of the day then revenge trade or chase the market overtrading, a good chunk of my losses were commissions alone... And as someone posted here on this thread, somedays the market will do whatever it wants and completely ignore all your "perfect" analysis and all the principles of your method, even when you think you have an A++++++ trade, which was exactly what happened.
Instead of taking it easy and taking smaller positions or completely stop trading for the day, I Started spiraling into those behaviors, at least I came to my senses and stopped, but why did I do that? It only made me lose more money stupidly.
Why do we override our rules and sane and safe trading practices to do this crap? It pisses me off. For example, I shouldn´t trade (I rarely trade) on friday, and IF I do it´s only by morning because on the afternoon is just a chop fest, and yet there I Was trying to place trades..
You get pissed at the market (and you really shouldn´t) and become another person...You become completely irrational.
EDIT
PS: I think I Will write down my trading rules in a big piece of paper using big characters and lay it in front of my keyboard for next week, so there is really no excuse to engage in this behavior again. I will even write "Don´t forget the guy from futures.io forum who blew up the account". YOU KNOW BETTER!!!
Lol, that's funny. I find novelty type tricks like this only work for like a week or so. It's more work working out our often times irrational psychological fears and tendencies. Like no one wants to do this, including myself, but it's worth more R than all your spreadsheets combined!
--Never Risk More Than 2% Of your Account Per Trade, Never Try To Make Up For Losses by Opening Big Positions
--Only Open Another Trade If You Already Have A "Free Trade" (STOP AT BREAKEVEN)
--If You Lose 3% Of Your Account, STOP TRADING FOR THE DAY (from initial balance of the day, after giving back trading profits)
--NEVER TRADE ON FRIDAY AFTERNOON
--I WILL NOT CHASE THE MARKET IF I HESITATED TAKING A TRADE WHERE I WAS SUPPOSED TO, NOR WILL I BECOME ANGRY BECAUSE OF IT - THE BUS LEFT AND THERE IS ALWAYS ANOTHER TRADE
--I WILL NOT FORCE TRADES BECAUSE OF FOMO OR JUST FOR THE SAKE OF IT BECAUSE I AM BORED
-I Will Only Take The Trades From The VSA Playbook (Springs, Upthrusts, No Demands and No Supplies at Areas Of Interest) - NO HAMSTERING FOR TAKING TRADES THAT DON´T FIT THE CRITERIA
--NEVER REVENGE TRADE! NEVER! IT IS IRRATIONAL BECOMING ANGRY AT THE MARKETS
--THE ONLY CASE where I Will Allow Myself A Big Position is: At Every US$1000 of Profits (What I mean by that is this: My initial balance of a high leverage forex account was US$1000. I would trade initially with 1/10 of a lot (0.1) - that was the regular trade size. So using a stop of 5 pips that was US$5. At every US$100 of profit, I would allow 1 trade of 1 lot (which is US$10 per pip, so the same trade would have a U$50 stop loss). Was a riskier shot, but at least I would have the other half (US$50) that would allow for 10 more trades using profit money. As your account grow bigger you just adjust it for it´s size keeping the same ratio.
New Additions:
---Even When You Think Your Analysis Is "Perfect" And You Have an A+++++ Setup, The Market Will Do Whatever It Wants, and Sometimes Will Completely Ignore The Principles of your Method. So again, NO NEED to get angry at the markets because "it didn´t do what it was supposed to do". Focus is ALWAYS on trade process and minimizing risk, NOT TRADE OUTCOME.
---REMEMBER THE 3 TIMES YOU BLEW UP YOUR ACCOUNT DISRESPECTING THOSE RULES!! REMEMBER THE GUY FROM FUTURES.IO FORUM
I will have those rules always on sight from now on (and that is another rule lol)
2% may not seem like a lot but its quite a lot, especially if there’s no edge. Also if you trade multiple markets they can correlate which can bring the risk to 4%, 6% and so on.
Coming, they can't be denied. Going, they can't be detained.
From the example of my list, a US$5 stop loss on a US$1000 account equals 0.5%
You said "...if you trade multiple markets they can correlate which can bring the risk to 4%, 6% and so on", this is countermanded by the trading rule "only open another trade if previous trade is at breakeven", the "free trade". If you have a free trade, then the risk is reset to zero.
