The hard road to consistency

I have reviewed all my charts and trades since May and have decided to change the trading plan a bit :) I have never been very confident in trades with a small 12 pips target. My analysis has revealed that very often the potential much bigger profit was left on the table. I also feel much more comfortable keeping the trade open and waiting for the bigger reward. Targets will be always set in advance based on the hourly view of major support/resistance/trendline.

Another improvement is to avoid trades in a clear consolidation. I was almost chopped to death on the last Tuesday.
 
Quote from calmeurotrader:

I have reviewed all my charts and trades since May and have decided to change the trading plan a bit :) I have never been very confident in trades with a small 12 pips target. My analysis has revealed that very often the potential much bigger profit was left on the table. I also feel much more comfortable keeping the trade open and waiting for the bigger reward. Targets will be always set in advance based on the hourly view of major support/resistance/trendline.

Another improvement is to avoid trades in a clear consolidation. I was almost chopped to death on the last Tuesday.
More...
sounds good
 
just keep in mind, there will come a time when after you have been stopped out many many times in a a row that you will look back on your trades and think, "I could have hit a 12 pip profit on almost all of them."

Sort of the, grass is always greener on the other side of the fence phenonema

there's an element of luck to trading the bigger moves

but you can't benefit from that luck if you are out at 12 pips

it's extremely rare for me to enter at the right time, but it's very common for me to be in at the right time

if you're having a hard time finding your setup in eur/usd, you might want to also follow some other pairs

eur.aud has been a very strong trender for me this last year
 
but I don't let my plan rule my life. I'm not dogmatic about these things. I will take a short quick profit if I just happen to get in right at the right time. Especially in forex where there is still a lot of what in my opinion is an over reaction, or sometimes just a whole string of stops getting hit.

It's the same for all of us

We start out flat of sound mind and body and set up a plan which includes a 30% drawdown.

Then in the depths of that drawdown we start to question if we were really that smart when we came up with the plan.

The worst thing to do is abandon the plan at that point. If you want to jump ship, there will be a better time later, when you are close to even.

But not everything is in the plan. Sometimes, it becomes obvious that there is just no point in waiting to be stopped out since that is surely what is to come. Other times it becomes obvious that you should just take your profit here and now, the hell with the plan.

If there is ever any question whatsoever, even if you have to think about it for a minute, it is always better to stick with the plan.
 
You must log in or register to reply here.
Back
Top