After about 14 months since I quit trading, I thought I may make a comeback doing some minor swing paper trading the EUR/USD.
I traded forex for about 12 months ending one year ago while finishing high school and entering my first year of college. I had about 60-80 live trades netting a 1.1% return. After that, I hit a drawdown limit, went back to paper trading and never became profitable again. I eventually realized I hated trading.
I believe the main causes to be:
1. No life balance - no women, too much time at my computer, not healthy enough social life, too consumed by my own thoughts.
2. Information overload - I went from trading EUR/USD with just 1 hour, 30 min, 15 min, 5 min charts to having 12 timeframes including tick charts, trading 2-4 pairs, and adding pivots and RSI to my charts. I strongly believe the human mind is simple and needs few inputs, even only before they are mastered and can add more.
3. Emotional - certain times of greed and desperation. Especially in intraday trading when I set a large part of my time aside, and got greedy and stressed trying to catch every move and act quickly. I am a slow, smart, analytical and associative thinker.
I believe the solution and best practice for the future is:
Swing trade using the monthly, weekly, 3 day, and daily EUR/USD charts exclusively. This is simple, and solves all problems. My goal is never to trade for money, and trade only because I enjoy the challenge and the act in moderation.
I will describe my upcoming system in the next post.
I traded forex for about 12 months ending one year ago while finishing high school and entering my first year of college. I had about 60-80 live trades netting a 1.1% return. After that, I hit a drawdown limit, went back to paper trading and never became profitable again. I eventually realized I hated trading.
I believe the main causes to be:
1. No life balance - no women, too much time at my computer, not healthy enough social life, too consumed by my own thoughts.
2. Information overload - I went from trading EUR/USD with just 1 hour, 30 min, 15 min, 5 min charts to having 12 timeframes including tick charts, trading 2-4 pairs, and adding pivots and RSI to my charts. I strongly believe the human mind is simple and needs few inputs, even only before they are mastered and can add more.
3. Emotional - certain times of greed and desperation. Especially in intraday trading when I set a large part of my time aside, and got greedy and stressed trying to catch every move and act quickly. I am a slow, smart, analytical and associative thinker.
I believe the solution and best practice for the future is:
Swing trade using the monthly, weekly, 3 day, and daily EUR/USD charts exclusively. This is simple, and solves all problems. My goal is never to trade for money, and trade only because I enjoy the challenge and the act in moderation.
I will describe my upcoming system in the next post.