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$2k -> $30k in 12 months is setting yourself up for failure.
Let's take trader1 & trader2. Trader 1 starts with $2k & sets himself the goal of making $10 per day. Some days he exceeds this and makes $30 a day - for this he gives himself a pat on the back and is fairly relaxed. Trader 2 starts with $2k & sets himself the goal of making $100 per day. Some days he misses this and makes $30 a day - for this he trawls over his charts, pulls his hair out and gets stressed wondering where he is going wrong.
Both traders make the same amount of money. Trader 2 ends up making mistakes to trawl back his lost profits.
Trader 2 is only aiming for $25k in 12 months. You are aiming for a lot more. You are guaranteeing your own failure with this goal. You are going to build up a lot of negative emotional capital with each day that you trade where you miss your daily contribution to the $30k.
More than likely - your account balance will be zero in 3 months unless you change this aspect.
This is harsh I know but it's inevitable if you approach it in this way.
Now - if your goal was to follow your plan as best you could and you rewarded yourself for that - you would be in a different position entirely when it came to handling negative performance.
Thanks man. My Goals is not about making money from the market right now because my engineer salary enough for me to live a decent life in a small town. Maybe you are right. Maybe i have a plan but that is not a realistic plan. Time for change maybe. i know i have an edge in the market, i know i have a trader personalities. i think i need to do a mediation and think about what u said here. again thanks a lot.
Your first trade lost $300 which happened because you broke your own rules.
In terms of dollars - how many dollars would you have lost if you didn't move the stop?
Let's say you had an account with someone like Oanda and could bet any size, then you set your size so that your stop loss would be a maximum loss of $20. How likely would you be to move it? Probably very unlikley, right?
I'd hazard a guess that your position size is too big.
i agreed man. Its all fix now. was reading Mike's psychology and money management journal last weenkend. It complete change my view about trading. Everything will change from this new weekend. Thank so much for your input man.
If u read my trade journal a lot . please point about if you see anything wrong. thnx
Getting in on retracements is mentally tougher at the point of entry - you are going long after price has gone down BUT after entry they are mentally easier as you are either out or it goes your way.
With breakouts, the chances are you have to sit through a mentally challenging retracement shortly after you get in.
With retracements - you probably can get to 1 target if the market reverses at the last swing high. With breakouts, you may be buying at the reversal point.
One of the best things I have on my charts are these turqoise lines...
The lines simply plot 10 ticks above and 10 ticks below current price. This is my maximum stop loss on an ES trade. In the above picture, the higher line is already on the last swing high, so a double-top would stop me out. This is enough to keep me out of a short trade - the stop is not in a decent place. Put that on your breakout trades and your stops will be in the middle of swings, a dreadful place for them - OR your stops will be huge.
A better technique IMHO if you trade break outs is to wait for an pullback during the break out and then entering in the direction of the breakout after closing of the bar in the direction of the breakout (so after that pullback is finished)
you will miss some of the break outs but you will increase your profitable trades.
When I started trading I started on the forex market. I'm convinced that it was the right move. I started loosing big money on futures and if I would do it over I would have stayed longer with forex before moving to futures.
i do agreed man. my hr shift 1 hr foward so i trade before london open today. break rule #1.
Also yeah u right about retracement. that what i felt too. my inner told me to get out that trade because it i had a feeling i made a bad choice, but i didnt i got stop out instead.Also i noticed i didnt even have any set up (well intermarket was ok for me togo long) but there was no actual renko set up. but i didnt i got stop out instead. well lesson learned.
