3.25% Loss
My first big losing trade of the week happened today. It was such a large loss, my 6 other profitable trades didn’t make up for it, but rather only dampened the effect. If I am holding a 50/200 pip spread for my exit orders, in theory every 4 winning trades should average out to a zero profit for one looser. I got stopped out at my 200 pip limit order. My loosing order was 10 lots and the rest of my trades today were 5 lots, so technically it’s like I won six trades and lost two. A 6:2 ratio averages out to be a 3:1. Therefore they didn’t calculate out to my 4:1 ratio and I took the loss. I still made quite a few profitable trades but the day came up being a loss because the markets closed for the weekend and I ran out of time to trade up into the profitable zone again. At least I was able to minimize the impact loss by averaging it out with profitable trades. I learned today that this is an averages game. I need to play the numbers and averages to my advantage to win. This means in the future I will keep all orders equally sized, and no more than 80% of my account equity to be tied up in trades at any given time. This means no single order should take up more than 27% of my account equity. It is the weekend now, so I’m going to relax, enjoy thoughts of having a very profitable week in the market, and forget about trading until Sunday evening.
Despite the loss for today, only traded 4 days and made a total of a 9.66% Profit this week!
Suck it Wall Street!
Not a bad week. I’m looking forward to replicating those results next week.
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