4 days ago I started to trade real money.
I must say that it’s harder from emotional perspective, than expected. The hardest part isn’t to cut losses but to let profits grow. Especially if taking into account my trading setup where the longer I stay in a position, the higher are profits and losses.
I would describe my trading style as “Trading against an Average Joe”.
I researched the market for a long time to find the most cricial mistakes of newbie traders. I do the opposite:
- I don’t try to catch highs or lows. I never try to predict the direction of the market but rather follow the crowd. I trade the market, not the future.
- I immediately cut losses. My maximum stop loss in any position is 50 points. I use hard stops, not “mental”. I never move stops. I never open a position without a hard stop.
- I let my profits run almost infinitely. It means that I close profitable positions only when I’m tired, not when I reached any specific price point. It’s harder to wait, than I initially expected. On the other side, I feel that I will be able to overcome it with practice.
- I add to winning, not losing positions. It means that I average profits. Contrintuitive, but actually works. For example, when price moves against me, I close positions using short stops. But, when the price moves according to my setup, I constantly add more and more into the winning position.
- I’m almost always in paper profits, not paper losses. Yes, as my paper profits grow, I also get released losses grow. They are small but there are plenty of them on a ranging market.
This week I traded as a robot. I needed a proof that my idea actually works. I expected something like breakeven or even some small losses but I was profitable at the end.
+30% on a small account in 4 trading days with maximum drawdown of 12%.
Next week I will try to use Forex Simulator to practice. I hope that it will enable me to find better entry points. If I will prove to myself that my product actually helps, I will immediately release it to the public.
Here is a report from my real (not demo!) account for this week:
Here is a MetaTrader 5 screenshot immediately before I closed the last position this Friday: